Question

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?

Answer 1

Answer:

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.