Municipal Energy, each produce suppose two utilities, Peoples Electric pollution per year. The government has a goal of eliminating half the pollutio nd, in turn, provides 150 pollution permits to each utility. A pollution permit is required to legally produce a ton of pollution. However, the two utilities are allowed to rade permits. Suppose the cost of eliminating one ton of pollution for People's Electric is $100 and the cost of eliminating a ton of pollution for Municipal Energy is $150. The total cost of each utility eliminating 150 tons of pollution is $ (Enter your response as a whole number.) the two utilities buy and sell permits with each other, then the minimum cost of eliminating 300 tons of pollution is $. (Enter your response as a whole number.)
Municipal Energy, each produce suppose two utilities, Peoples Electric pollution per year. The government has a goal of eliminating half the pollutio nd, in turn, provides 150 pollution permits to each utility. A pollution permit is required to legally produce a ton of pollution. However, the two utilities are allowed to rade permits. Suppose the cost of eliminating one ton of pollution for People's Electric is $100 and the cost of eliminating a ton of pollution for Municipal Energy is $150. The total cost of each utility eliminating 150 tons of pollution is $ (Enter your response as a whole number.) the two utilities buy and sell permits with each other, then the minimum cost of eliminating 300 tons of pollution is $. (Enter your response as a whole number.)
Chapter1: Making Economics Decisions
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Transcribed Image Text:Suppose two utilities, People's Electric and Municipal Energy, each produce 300 tons of pollution per year. The government has a goal of eliminating half the pollution,
and, in turn, provides 150 pollution permits to each utility. A pollution permit is required to legally produce a ton of pollution. However, the two utilities are allowed to
trade permits. Suppose the cost of eliminating one ton of pollution for People's Electric is $100 and the cost of eliminating a ton of pollution for Municipal Energy is
$150.
The total cost of each utility eliminating 150 tons of pollution is $
(Enter your response as a whole number.)
If the two utilities buy and sell permits with each other, then the minimum cost of eliminating 300 tons of pollution is $. (Enter your response as a whole number.)
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