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21 July, 10:41

The government has recently introduced a marketable permit program for major polluters where one permit gives permission to pollute one unit. When the program is introduced, Firm A emits 400 units of pollutant and so is granted 400 permits. After one year, firms are issued 25% fewer pollution permits. If Firm A reduces its pollutants from 400 units to 260 units, how many permits does it sell after one year?

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  1. 21 July, 10:59
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    40

    Explanation:

    The calculation of Permits remaining is shown below:-

    New number of permits issued = Emits units of Pollutant * Remaining percentage

    = 400 * (100% - 25%)

    = 400 * 0.75

    = 300

    Permits remaining = New number of permits issued - Reduction in units

    = 300 - 260

    = 40

    The company sells 40 permits

    Therefore, for computing the permits remaining we simply applied the above formula.
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