Question TO Imagine that the price of a single permit is 100 $, with each permit

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Question TO Imagine that the price of a single permit is 100 $, with each permit covering 1 tC. If a company gets 3 permits for free for the year, and the company burns 6 tC of fossil fuel in that year, what does the company do? O sells 3 permits and thereby loses 300$ sells 3 permits and thereby earns 300$ O buys 6 permits and thereby loses 600$ O buys 3 permits and thereby loses 300$ O buys 3 permits and thereby earns 300 $ Question 17 1 pts Imagine that the price of a single permit is 100 $, with each permit covering 1 tC. If a company gets 6 permits for free for the year, and the company burns 3 tC of fossil fuel in that year, what does the company do? buys 6 permits and thereby loses 600$ O sells 3 permits and thereby loses 300$ O sells 3 permits and thereby earns 300$ O buys 3 permits and thereby loses 300$ buvs 3 permits and therebv earns 300

Explanation / Answer

16> d buys 3 permits and loses $300

Reason

Since first 3 tc of fuel burning is free, they have to buy permits for the rest of them, so the total cost is $100x3=$300

17> c> sell 3 permit, earn $300

reason

Since, they are burning less than the free permit amount, they can sell their permit in the market to earn money.

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