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Question 4 What is the net cost from the Cap & Trade for the following scenario? New Policy Status Quo of (pollution Cleanup Cost Pollution

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Question 4 What is the net cost from the Cap & Trade for the following scenario? New Policy Status Quo of (pollution Cleanup Cost Pollution (Gal) allowed) (Gal) per gal Permit issued (Gal) 8 500 500 500 3 500 Toxic 1200 Sludge 1200 Market Price of each permit is $4 O Cost of $5200 Cost of $1400 Profit of $1000 Profit of $2100 Cost of $2300 O Cost of $1500

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