Exhibit
$\begin{array}{lrr}
\text {Cost of Reducing} & & & \
\text {Emissions from }& \text { Firm A} & \text { Firm B} & \text {Firm C }\
\hline \text { 5 to 4 tons} & \$ 500 & \$ 100 & \$ 200 \
\text {4 to 3 tons }& \$ 600 & \$ 200 & \$ 250 \
\text {3 to 2 tons }& \$ 700 & \$ 300 &\$ 350 \
\text {2 to 1 ton} & \$ 800 &\$ 400 &\$ 500 \
\text {1 ton to zero }& \$ 900 & \$ 500 &\$ 700
\end{array}$
-Refer to Exhibit. What would be the total cost if each firm was initially emitting 5 tons of pollution, then the government issued transferable pollution rights allowing a total of 9 tons of pollution in the industry in order to decrease pollution by a total of 6 tons?

Question

Exhibit
 $\begin{array}{lrr}
 \text {Cost of Reducing} & & & \
 \text {Emissions from }& \text { Firm A} & \text { Firm B} &  \text {Firm C }\
\hline \text { 5 to 4 tons} & \$ 500  &  \$ 100 &  \$ 200  \
 \text {4 to 3 tons }& \$ 600  & \$ 200  & \$ 250  \
 \text {3 to 2 tons }& \$ 700 & \$ 300  &\$ 350 \
 \text {2 to 1 ton} & \$ 800  &\$ 400 &\$ 500 \
 \text {1 ton to zero }& \$ 900  &  \$ 500  &\$ 700 
\end{array}$
-Refer to Exhibit. What would be the total cost if each firm was initially emitting 5 tons of pollution, then the government issued transferable pollution rights allowing a total of 9 tons of pollution in the industry in order to decrease pollution by a total of 6 tons?

Quizplus · Accepted Answer

The Answer of Exhibit
 $\begin{array}{lrr}
 \text {Cost of Reducing} & & & \
 \text {Emissions from }& \text { Firm A} & \text { Firm B} &  \text {Firm C }\
\hline \text { 5 to 4 tons} & \$ 500  &  \$ 100 &  \$ 200  \
 \text {4 to 3 tons }& \$ 600  & \$ 200  & \$ 250  \
 \text {3 to 2 tons }& \$ 700 & \$ 300  &\$ 350 \
 \text {2 to 1 ton} & \$ 800  &\$ 400 &\$ 500 \
 \text {1 ton to zero }& \$ 900  &  \$ 500  &\$ 700 
\end{array}$
-Refer to Exhibit. What would be the total cost if each firm was initially emitting 5 tons of pollution, then the government issued transferable pollution rights allowing a total of 9 tons of pollution in the industry in order to decrease pollution by a total of 6 tons?

Exhibit -Refer to Exhibit