Firm |
TC of eliminating two units of pollution |
Firm X |
95+120 =215 |
Firm Y |
450 + 800 = 1250 |
Firm Z |
80+100 = 180 |
At 178 & 186 Firm Z will sell permit
Firm |
Initial poll permits |
Action |
Final amount |
Cost |
Firm X |
2 |
Sell one permits |
3 |
95+120+200=415 |
Firm Y |
2 |
Buy two permits |
0 |
0 |
Firm Z |
2 |
Sell one permits |
3 |
80+100+150=330 |
Proposed method |
TC |
Regulation |
215+1250+180=1645 |
Tradeable permits |
415+330=745 |
Blank : More
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