Saved Help Two firms, Sludge Oil and Northwest Lumber, have access to five production processes, each one of which has a different cost gives off a different amount of pollution. The daily costs of the processes and the corresponding number of tons of smoke emil are as shown in the following table: Process (smoke) A (4 tons/day) B (3 tons/day) C (2 tons/day) D (1 ton/day) E (0 tons/day) Cost to Sludge Oil ($/day) 50 170 120 200 500 Cost to Northwest Lumber ($/day ) 100 180 500 1 , 000 2, 000 The City Council wants to curb emissions by half and decides to auction off four permits, each of which entitles the bearer to emit 1 ton of smoke per day. No smoke may be emitted without a permit. Suppose the government conducts the auction by starting at $1 and asking how many permits each firm wants to buy at that price. If the total is more than four, it then raises the price by $1 and asks again, and so on, until the total quantity of demanded permits falls to four. How much will each permit sell for in this auction? Each permit will sell for $ How many permits will each firm buy? Sludge Oil will purchase permit(s). Northwest Lumber will purchase permit(s). What will be the total cost to society of this reduction in pollution? Total cost of pollution reduction will be $ MacBook Air 888 DD EA F5 F6 F7 E9 @ # & 2 3 4 5 6 8 9 O W E R T Y U O P S D F G H J K L