Business
Business, 06.05.2020 03:02, bfell92

Firm A currently dumps 157 tons of chemicals into the local river. Firm B currently dumps 183 tons of chemicals into the local river. The government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. The government gives each firm 11 pollution permits. The abatement costs of one ton of pollution is $160 for Firm A and $65 for Firm B. What would be the total cost of reducing pollution, if the firms are allowed to trade permits between each other?

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