The cap and trade program created by the Clean Air Act is a method to limit air pollution in a(n) efficient manner by allowing the market to set the price for meeting government regulation standards. Under the cap and trade program, a limit is set on for a particular area. Pollution in each area are given a(n) for the amount of pollutants they may produce. Facilities that do not use their full allowance may either sell their unused allowance or it. On the other hand, facilities producing a high level of air pollutants are free to either purchase additional allowances or emissions, and therefore can choose whichever is .

Special order carson manufacturing, inc., sells a single product for $36 per unit. at an operating level of 8,000 units, variable costs are $18 per unit and fixed costs $10 per unit. carson has been offered a price of $20 per unit on a special order of 2,000 units by big mart discount stores, which would use its own brand name on the item. if carson accepts the order, material cost will be $3 less per unit than for regular production. however, special stamping equipment costing $4,000 would be needed to process the order; the equipment would then be discarded. assuming that volume remains within the relevant range, prepare an analysis of differential revenue and costs to determine whether carson should accept the special order. use a negative sign with answer to only indicate an income loss from special order; otherwise do not use negative signs with your answers.