Given allowances and marginal abatement costs complete the t

Given allowances and marginal abatement costs, complete the table below.

Firms AllowancesMarginal (Tons/Yr) Final Tons 0 Emissions to be Reduced Allowances Bought Allowances Sold Total Abatement Cost (Tradable Allowances Abatement Cost (S/Ton) 300 300 300 300 400 400 400 2,400 50 100 100 150 200 250 400 Alkyone Merope Kelaino Elektra Sterope Taygete Maia Industry Total

Solution

Itis based on assumption that all firms are actually doing 350 tons of polluton.

Firms	Allowances per year	Marginal Abatement Cost ($ per ton)	Allowances bought	Alloowances sold	Final tons of emmisisons to be reduced	Total abatement cost 9tadable alowances)
Alkyone	300	50	50	-	50	2500
Merope	300	100	50	-	50	5000
Kelaino	300	100	50	-	50	5000
Electra	300	150	50	-	50	7500
Sterope	400	200	-	50	-	-
Taygette	400	250	-	50	-
Maia	400	400	-	50	-
Indsutry Total	2400	-	-	150	200	2000