Question

If the government issued license to pollute a total of 1,600 tons of emissions, the market price to emit 1 ton of emissions would equal:___________.

Answer 1

Answer:

$450 per ton.

Explanation:

The government has allowed to pollute 1600 ton of emission. The business has secured license from the government to run its business activities and drain the polluted waste in the sea. The total pollution allowed is 1600 tons and the cost of securing the license is $720,000. The cost per ton of emission would be $450.