Pollution permit for each ton of pollution emitted

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Reference no: EM1315461

Q. Two firms A also B each currently emit 100 tons of chemicals into the air. The government has decided to reduce the pollution also from now on will require a pollution permit for each ton of pollution emitted into the air/ The government gives each firm 40 pollution permits, which it can either utilize or sell to the other firm. It costs firm A $275 for each ton of pollution which it eliminates before it is emitted into the air. It is likely which?

a.) firm A quill buy all of firm B's pollution permits. Each one will cost between $250 also $275.

b.) firm B will buy all of firm A's pollution permits. Each one will cost between $250 also $275.

c.) both firms will utilize their own pollution permits.

d.) firm A will buy some of firm B's pollution permits. Each one will cost less than $250.

Reference no: EM1315461

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