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There are 5 companies in total that release pollution. the government wants to reduce pollution by...

There are 5 companies in total that release pollution. the government wants to reduce pollution by 25% and gives each company permits with 75% of its current pollution. The table below shows the pollution quantities and marginal reduction cost. After the permits are traded, whats is the overall reduction cost and how many permits will E sell or buy?

A B C D E
pollution 100 200 100 100 100
marginal reduction cost 4 1 8 10 12

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