Kip and Yale Run Separate Mining Companies in the Same

Multiple Choice

Kip and Yale run separate mining companies in the same forest. Both pollute the river flowing through the forest with debris from their work. In the table below, the first row shows the current level of debris that makes its way into the river from their work. The following table set out information that show how much it would cost each company to reduce its pollution by additional
Increments of 10 pounds.

If a system of tradable permits is introduced, the total cost of cutting current debris in half is

A) $40
B) $45
C) $50
D) $55