(Table: Pollution and Marginal Cost of Reduction) Look at the Table

question 188

Essay

(Table: Pollution and Marginal Cost of Reduction) Look at the table Pollution and Marginal Cost of Reduction.There are two large firms in your community, Big Chemical and Mega Manufacturing, and each is a significant source of pollution.Combined, they are producing 500 tons of pollution, and the EPA has determined that pollution levels should be much lower, 250 tons.The table shows the current pollution levels for each firm and the marginal cost of reducing pollution for each firm.The marginal cost is constant.a) If the EPA dictated that each firm must emit only 125 tons of pollution, how much total cost would the firms incur to meet this environmental standard?
b) If the EPA distributed 125 pollution permits to each firm, each giving the firm the right to emit one ton of pollution, which firm will sell pollution permits, and which firm will buy pollution permits?
c) Under this system of pollution permits, what is the total cost to the firms of reducing pollution to the limit of 250 total tons?

---

Definitions:

Sleep Rhythms

The patterns of sleep and wakefulness, often referred to as circadian rhythms, that are regulated by internal biological clocks.

Multicultural Studies

An academic discipline focused on understanding the cultural diversity within societies, examining the social dynamics, and addressing issues of inequality and diversity.

Postmature

A fetus not yet born as of 2 weeks after the due date or 42 weeks after the mother’s last menstrual period.

Postfetal

Pertaining to the stage of life or developmental phase occurring after birth.