Once the Tradable Pollution Permits Have Been Issued to Firms

question 64

Multiple Choice

Once the tradable pollution permits have been issued to firms,

• A) each firm will reduce the level of pollution it generates.
• B) the government determines the price of the permits.
• C) firms with the highest cost of pollution abatement will have the greatest willingness to pay for the permits.
• D) firms with very low pollution abatement costs will purchase more permits.

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