Companies | Initial pollution level (units) | Marginal cost of reducing pollution (per unit) |
College Cleaners | 230 | $5 |
Big Green Cleaners | 120 | $2 |
303
Suppose instead that Collegetown issues 100 pollution vouchers to each company, each entitling the company to one unit of pollution, and that these vouchers can be traded.
Quantity of security guards | Total cost | Total individual benefit to each resident |
0 | $0 | $0 |
1 | 150 | 10 |
2 | 300 | 16 |
3 | 450 | 18 |
4 | 600 | 19 |
304