The Paper Industry and Brewery Industry Each Emit 60 Tons

Multiple Choice

The paper industry and brewery industry each emit 60 tons of particulates into the air. It costs the paper industry $1,000 to remove 1 ton of particulates and it costs the brewery industry $1,400 to remove 1 ton of particulates. In an effort to reduce particulate pollution, the government gives each industry tradeable allowances worth 50 tons of particulates. We would expect that:

A) the paper industry will buy tradeable allowances from the brewery industry at a cost between $1,000 and $1,400 per allowance.
B) the paper industry will buy tradeable allowances from the brewery industry at a cost greater than $1,400 per allowance.
C) the brewery industry will buy tradeable allowances from the paper industry at a cost between $1,000 and $1,400 per allowance.
D) the brewery industry will buy tradeable allowances from the paper industry at a cost greater than $1,400 per allowance.