URGEENNNTTT HOW WAS THIS SOLVED

What is the net cost from the Cap & Trade for the following scenario?

		New Policy
	Status Quo of Pollution (Gal)	(pollution allowed)	Cleanup Cost per gal	Permit issued
Toxic	1600	600	14	600
Sludge	1600	600	3	600
Market Price of each permit is $4

Cost of $21400

Cost of $15400

Cost of $13000

Cost of $18200

Correct Answer

Cost of $10400