There are three major ferry lines operating in Vancouver, each generating 100 units of pollution per year. The ferry lines face the costs of reducing pollution that are shown in the table below. Ferry line A B с Cost of reducing pollution by 1 unit $1,200 $2,400 $1,600 a. The BC government has decided it wants to reduce pollution levels by 50 percent and requires each ferry line to cut its pollution in half. Determine the cost of pollution reduction for each ferry line. Instructions: Round your answers to the nearest dollar.
There are three major ferry lines operating in Vancouver, each generating 100 units of pollution per year. The ferry lines face the costs of reducing pollution that are shown in the table below. Ferry line A B с Cost of reducing pollution by 1 unit $1,200 $2,400 $1,600 a. The BC government has decided it wants to reduce pollution levels by 50 percent and requires each ferry line to cut its pollution in half. Determine the cost of pollution reduction for each ferry line. Instructions: Round your answers to the nearest dollar.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:There are three major ferry lines operating in Vancouver, each generating 100 units of pollution per year. The ferry lines face the costs
of reducing pollution that are shown in the table below.
Ferry line
A
B
с
Cost of reducing pollution by 1 unit
$1,200
$2,400
$1,600
a. The BC government has decided it wants to reduce pollution levels by 50 percent and requires each ferry line to cut its pollution in
half. Determine the cost of pollution reduction for each ferry line.
Instructions: Round your answers to the nearest dollar.
Ferry line
A
B
с
Cost of pollution reduction
$
$
$
b. The total cost of pollution reduction is $
c. Suppose the government decides to give each ferry line 50 tradable permits. Each permit allows a ferry line to produce one unit of
pollution.
Ferry line (Click to select) will buy
permits from ferry line (Click to select)
d. Under this system of tradable permits, the total cost of pollution reduction is $
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