The following companies all manufacture widgets and dump tons of glop into the air. The government wants to halve total pollution but does not know how much it will cost each company. Determine the maximum permit price (whole dollar amount), the number of permits traded, and the revenue and costs of trading permits if the government employs a tradable permit scheme in which it gives the same amount of permits to each manufacturer at no cost.

Question

The following companies all manufacture widgets and dump tons of glop into the air.  The government wants to halve total pollution but does not know how much it will cost each company. Determine the maximum permit price (whole dollar amount), the number of permits traded, and the revenue and costs of trading permits if the government employs a tradable permit scheme in which it gives the same amount of permits to each manufacturer at no cost.

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The Answer of The following companies all manufacture widgets and dump tons of glop into the air.  The government wants to halve total pollution but does not know how much it will cost each company. Determine the maximum permit price (whole dollar amount), the number of permits traded, and the revenue and costs of trading permits if the government employs a tradable permit scheme in which it gives the same amount of permits to each manufacturer at no cost.

The Following Companies All Manufacture Widgets and Dump Tons of Glop