There are three industrial firms in Happy Valley. Firm A B Because firm Firm A B...

 

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There are three industrial firms in Happy Valley. Firm A B Because firm Firm A B C The government wants to reduce pollution to 60 units, so it gives each firm 20 tradable pollution permits. C Initial Pollution Level Cost of Reducing Pollution by 1 Unit (Units) 30 40 Total 20 has the highest cost of reducing pollution by 1 unit, it would like to has the lowest cost of reducing pollution by 1 unit, it is willing to Complete the second column of the following table by indicating who buys and sells permits in this case. Complete the fourth column of the table with the number of permits each firm ends up with after trading with the others. Next, subtract the number of permits from the initial pollution level to determine how many units of pollution reduction each firm has to complete, and enter these values into the fifth column of the table. Next, determine the total cost of reducing the pollution levels you determined in the previous column, and enter that into the final column of the table. Finally, add up the total pollution reduction costs for each firm and enter the total amount in the final cell of the total row in the following table. (Dollars) 20 30 10 Buys or Sells Initial Pollution Level 30 40 20 If permits could not be traded, firm A would have to remove units of pollution at a total cost of $ The overall cost of reducing pollution in this case is $ Permits after Trade Remaining Pollution Reduction the firm with the highest cost. r and firm C would have to remove which is another firm. Because firm Cost of Reducing Pollution by 1 Unit (Dollars) 20 30 10 units of pollution at a total cost of S firm 8 would have to remove units of pollution at a total cost of S than with tradable permits. Total Pollution Reduction Cost (Dollars) There are three industrial firms in Happy Valley. Firm A B Because firm Firm A B C The government wants to reduce pollution to 60 units, so it gives each firm 20 tradable pollution permits. C Initial Pollution Level Cost of Reducing Pollution by 1 Unit (Units) 30 40 Total 20 has the highest cost of reducing pollution by 1 unit, it would like to has the lowest cost of reducing pollution by 1 unit, it is willing to Complete the second column of the following table by indicating who buys and sells permits in this case. Complete the fourth column of the table with the number of permits each firm ends up with after trading with the others. Next, subtract the number of permits from the initial pollution level to determine how many units of pollution reduction each firm has to complete, and enter these values into the fifth column of the table. Next, determine the total cost of reducing the pollution levels you determined in the previous column, and enter that into the final column of the table. Finally, add up the total pollution reduction costs for each firm and enter the total amount in the final cell of the total row in the following table. (Dollars) 20 30 10 Buys or Sells Initial Pollution Level 30 40 20 If permits could not be traded, firm A would have to remove units of pollution at a total cost of $ The overall cost of reducing pollution in this case is $ Permits after Trade Remaining Pollution Reduction the firm with the highest cost. r and firm C would have to remove which is another firm. Because firm Cost of Reducing Pollution by 1 Unit (Dollars) 20 30 10 units of pollution at a total cost of S firm 8 would have to remove units of pollution at a total cost of S than with tradable permits. Total Pollution Reduction Cost (Dollars)

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In this scenario we have three firms in Happy Valley each with an initial level of pollution and a different cost of reducing pollution by one unit Th... View the full answer