I have attempted this microeconomics questions multiple times but cannot seem to grasp this question.

3. Working with Numbers and Graphs Q3 Suppose the government wants to reduce the total pollution emitted by three firms. Currently, each firm is creating 4 tons of pollution, for a total of 12 tons. The government is considering the following two methods to reduce total pollution to 6 tons: 1. The government sets regulation specifying that each of the three firms must cut its pollution in half. 2. The government allocates two tradable pollution permits to each of the three firms. Each permit allows the firm to emit 1 ton of pollution. Assume the negotiation and exchange of permits are costless. The following table shows the cost each firm faces to eliminate each unit of pollution. Cost of Eliminating: Firm X Firm Y Firm Z First ton of pollution $550 $1,000 $300 Second ton of pollution $700 $1,800 $400 Third ton of pollution $900 $2,900 $500 Fourth ton of pollution $1,200 $4,000 $600 Suppose the owners of the three firms get together and agree on a trading price of $800 per permit.Complete the following table with the action each firm will take at this permit price and the amount of pollution each firm will eliminate. Initial Pollution Permit Allocation Final Amount of Pollution Eliminated Firm (Tons of pollution) Action (Tons of pollution) Firm X Firm Y N Firm Z 2 Buy one permit Buy two permits Don't buy/sell Sell one permit Determine the total cost of eliminating 6 tons of polluti d, and enter the amounts in the following table. Sell two permits Total Cost of Elimina ation Method (Dollars) Regulation Tradable pollution permits In this case, using tradable pollution permits reduces 6 tons of pollution at using regulation