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The table below shows current carbon emissions and the cost of reducing carbon emissions for three industrial firms. The government introduces a cap-and-trade policy to
The table below shows current carbon emissions and the cost of reducing carbon emissions for three industrial firms. The government introduces a cap-and-trade policy to regulate carbon emissions. The total cap on emissions is 180 tons of carbon, and each firm receives an initial allocation of tradable permits for 60 tons of carbon emissions. Current Carbon Cost of Reducing Emissions Firm Emissions (tons) by 1 Ton ($) A 80 150 B 100 200 70 50 Instructions: Enter your answer as a whole number. a. Firm A will buy 20 emission permits from | Firm C. Firm B will sell 40 emission permits to Firm C. b. To break even, the selling firm must receive: $ 3000
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