Answered: maximize profits

Business

Economics

maximize profits

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter14: Environmental Economics

Section: Chapter Questions

Problem 4SQP

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Question

If a firm can reduce its sulfur dioxide emissions for $30 per ton, but it owns tradable emissions permits that are selling for $40 per ton, what will the firm want to do if it is trying to maximize profits?

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