With Tradable Emissions Permits, the Main Problem Is to Determine

Multiple Choice

With tradable emissions permits, the main problem is to determine the _____, while with emissions taxes the main problem is to determine the _____.

A) optimal quantity of pollution; optimal tax rate
B) optimal price of the permits; optimal level of pollution
C) optimal quantity of pollution; marginal social benefit of pollution
D) marginal social cost of pollution; optimal tax rate