a. $15,500 b. 19,600 c. 24,875 d. 28,250. 2. If Squirrel Township issued 300 pol
ID: 3216512 • Letter: A
Question
a. $15,500
b. 19,600
c. 24,875
d. 28,250.
2. If Squirrel Township issued 300 pollution permits to each firm in December 2017 and the market price for each pollution permit is $105 in 2018, Big will
a. reduce its 2017 pollution level by 125 tonnes
b. increase its 2017 pollution level by 150 tonnes
c. reduce its 2017 pollution level by 175 tonnes
d. maintain its 2017 pollution level.
3. If Squirrel Township issued 300 pollution permits to each firm in December 2017 and the market price for each pollution permit is $105 in 2018, Medium will
a. reduce its 2017 pollution level by 50 tonnes
b. increase its 2017 pollution level by 75 tonnes
c. reduce its 2017 pollution level by 125 tonnes
d. maintain its 2017 pollution level.
Explanation / Answer
2. If Squirrel Township issued 300 pollution permits to each firm in December 2017 and the market price for each pollution permit is $105 in 2018, Big will
a. reduce its 2017 pollution level by 125 tonnes
b. increase its 2017 pollution level by 150 tonnes
c. reduce its 2017 pollution level by 175 tonnes
d. maintain its 2017 pollution level.
big is in his permit so it will maintain 2017 pollution level
3. If Squirrel Township issued 300 pollution permits to each firm in December 2017 and the market price for each pollution permit is $105 in 2018, Medium will
a. reduce its 2017 pollution level by 50 tonnes
b. increase its 2017 pollution level by 75 tonnes
c. reduce its 2017 pollution level by 125 tonnes
d. maintain its 2017 pollution level.
medium is in its limit so it will maintain 2017 pollution level..
1)
government wsnt to reduce from 1200 to 900=(1200-900)/1200=25%
cost of reducing small=200*0.25*120
cost of reducing medium=400*0.25*100
cost of reducing big=600*0.25*90
total cost=600*0.25*90+400*0.25*100+200*0.25*120
=$29500
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