What is the revenue generated from permit sales

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Reference no: EM133205152

Assignment:

Suppose that a firm's emissions and Marginal Abatement Cost (MAC) data are summarized in the table below.

Emissions	MAC
0	200
10	180
20	160
30	140
40	120
50	100
60	80
70	60
80	40
90	20
100	0

a. If the price of a pollution permit is $100, how many permits will the firm need? Explain.

b. Suppose that the price of a pollution permit increases to $120, how many permits will the firm need? Explain.

c. With this new price of $120, will the firm's emissions increase or decrease? By how much? Explain.

d. Can the firm sell any permits? If so, what is the revenue generated from permit sales? Explain.

Reference no: EM133205152

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