Instead of using regulations to achieve the 20 percent reduction in emissions discussed in the preceding problem, suppose the EPA requires each of the five emitters to pay a fee of $450 for each ton of sulfur dioxide it dumps in the air during the year. Use the data from the table for problem 3 to predict which companies will purchase pollution rights, total cost of achieving the reduction in sulfur dioxide emissions, and revenue generated from the sale of pollution rights in the area.
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