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In: Economics

Assume there are 5 companies with the following pollution (in tons) and constant marginal cost of...

Assume there are 5 companies with the following pollution (in tons) and constant marginal cost of reduction MCR (in $/ton)

A (pollution 60, MCR 1)

B (pollution 90, MCR 2)

C (pollution 30, MCR 4)

D (pollution 60, MCR 3)

E (pollution 120, MCR 5)

if permits can be trade, who sells permits?

- A and C

- B and C

- A and B

- A

- B

- none of the above

Solutions

Expert Solution

Rahul Sunny answered 1 year ago
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