Under a Transferable Emissions Permit System

Multiple Choice

Under a transferable emissions permit system,

A) the firms with the lowest marginal abatement cost curves will reduce emissions most.
B) the firms with the highest marginal abatement cost curves will reduce emissions most.
C) the firms with the lowest marginal social cost curves will reduce emissions most.
D) the firms with the highest marginal social cost curves will reduce emissions most.
E) all firms will reduce emissions equally.