Reduction in Emissions MC to Reduce Emissions MC to Reduce Emissions

in tons by Steel Plant by Paper Plant

1 $ 400 $ 200

2 500 280

3 600 320

Table 28.1 Refer to Table 28.1.Suppose the government allows these two firms to trade pollution permits.The most efficient transaction would result in

Question

Reduction in Emissions	MC to Reduce Emissions	MC to Reduce Emissions
in tons	by Steel Plant	by Paper Plant
1	$ 400	$ 200
2	500	280
3	600	320

Table 28.1 Refer to Table 28.1.Suppose the government allows these two firms to trade pollution permits.The most efficient transaction would result in

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The Answer of

Reduction in Emissions	MC to Reduce Emissions	MC to Reduce Emissions
in tons	by Steel Plant	by Paper Plant
1	$ 400	$ 200
2	500	280
3	600	320

Table 28.1 Refer to Table 28.1.Suppose the government allows these two firms to trade pollution permits.The most efficient transaction would result in