Given this quantity of permits, the price for each permit in the market that the U.S government should charge for pollution rights will be <u>$45</u> as this ensures the socially optimal quantity of pollution, which could have been imposed as a tax.
<h3>What are pollution rights?</h3>
Pollution rights are the rights given to firms in an economy to buy and sell government-issued licenses or permits.
Pollution rights or permits grant the holders the right to create and release a certain amount of pollution that achieves the socially optimal quantity.
Thus, given the number of permits, the price for each permit in the market that the U.S government should charge for pollution rights will be <u>$45</u>.
Learn more about pollution problems at brainly.com/question/26232566
Answer and Explanation:
The computation of the overhead rate for each activity is as follows;
Overhead rate is
= Respective overhead cost ÷ Respective activity
For Machine setups
= ($202,800 ÷ 2,600 setups)
= $78 per setup
For Machining
= ($364,500 ÷ 24,300 machine hours)
= $15 per machine hour
For Inspection
= ($88,000 ÷ 1,600 inspections)
= $55 per inspection
In this way it is calculated
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