{'3 MindTap-Cengage Learning X H Course Hero X i + o C 0 ng.cengage.com/staticb/ui/evo/index.html?deploymentld=5984331885001331312624185366&e|SBN=9780357133699&id=1196368955&snapshotld=2428402& x} Apps M Gmail Amber v My Home Courses Catalog and Study Tools Rental Options College Success Tips Career Success Tips Help Give Feed back 9; n. CENGAGE I MINDTAP Topic 3 Assignment The government wants to reduce pollution to 60 units, so it gives each rm 20 tradable pollution permits. Because rm B V has the highest cost of reducing pollution by 1 unit, it would like to V another rm. Because rm C v has the lowest cost of reducing pollution by 1 unit, it is willing to v the rm with the highest cost. 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 rm 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 rm has to complete, and enter these Values into the fth 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 nal column of the table. Finally, add up the total pollution reduction costs for each rm and enter the total amount in the nal cell of the total row in the following table. Initial Remaining Cost of Reducing Total Pollution Pollutlon Permlts Pollution Pollution by 1 Unit Reduction Cost Firm Buys or Sells Level after Trade Reduction (Dollars) (Dollars) A v 30 7 20 C 3 v 40 l 30 [: c v 20 i m [: Total C If permits could not be traded, firm A would have to remove I: units of pollution at a total cost of- , firm B would have to remove units of pollution at a total cost of $ , and rm C would have to remove units of pollution at a total cost of $ The overall cost of reducing pollution in this case is , which is v than with tradable permits. Grade It Now Save 3. Continue Continue without saving Q Search this course 0