rea, for a total of 12 pollut Avaliable Methods to Reduce Pollution . The government sets pollution standards using regulation. 2. The government allocates tradable pollution permits. Each firm faces different costs, so reducing pollution is more difficult for some firms the hows the cost each firm-faces to Iminate each unit of portution, For each firm, ass ding pollution to zero (that is, eliminating all is urges of pollut chibitively expensive. Cost of Eliminating the . .. First Unit of Pollution Second Unit of Pollution Third Unit of Pollution (Dollars) (Dollars) (Dollars) Firm X 55 70 110 irm Y 650 1,500 Firm z 125 180 pollution by 6 units. Method 1: Regulation The furst government employee suggests limiting pollution through regulation. To meet the pollution goal, the government requires each firm to reduce is pollution by z units. Complete the following table with the total cost to each firm of reducing its pollution by 2 units. Total Cost of Ell inating Two Units of Pollution Firm (Dollars) Firm X Firm Y Firm z Method 2: Tradable Permits Meanwhile, the other employee propose ion in the area from 12 units to 6 units. He suggests that the governm on, It can emit 1 unit of polution. Firms are free to trade pollution is can agree on a price. For example, If firm X agrees to sell a permit to n ith three permits and would need to reduce its pollution by only 1 unit, while firm X would end up sution by 3 units. Ass otiation and Exchange of permits are costings. ecouse firm Y has high pollution.reduction bats, It thinks it might be From firm X and a permit from firm Z, so that it doesn't have to reduce its own po are both firm * and firm Z willing to sell one of their permits to firm Y? Check all that applys Q493 D $171 $36 price of $129 per perme. Complete the following table with the action each firm will take at this p amount or pollution each arm will eliminate, and the amount costs each firm to reduce pollution to the necessary level, if a firm purchases two perm ume that it buys one permit from each of the other Arms. (Hint: Do not include the prices paid for permits in the cost of reducing partition.) Initial Pollution Permit Final Amount of Pollution Cost of Pollution Allocation Eliminated Reduction Firm (Units of pollution) Action (units of pollution) (Dollars) Firm x Firm Y Firm Z Regulation Versus Tradable Permits Determine the total cost of of hating six units of pon to get information from previous tasks to complete this cable) Total Cost of Eliminating Six Units of Pollution Proposed Method Regulation Tradable Permits In this case, you can conclude that ating pollution is costly to society when the regulates each firm to esminate a certain amount of pollution. Grade it Now Save & Continue