Under a Transferable Emissions Permit System with N Possible Polluters

Multiple Choice

Under a transferable emissions permit system with n possible polluters, the government enforces the total amount of emissions allowable at X units by:

A) setting a different fee for each firm so that each firm chooses to emit X/n units.
B) setting the same fee for each firm so that each is forced to emit X/n units.
C) setting a different standard for each firm, with X/n being the average.
D) setting the same standard for each firm at X/n.
E) issuing X permits.