The Figure Below Shows the Marginal Pollution Abatement Cost Curves

Multiple Choice

The figure below shows the marginal pollution abatement cost curves of two firms- Company X and Company Y.

-Refer to the figure above. Which of the following will happen if the government allocates 30 pollution permits to each company and the price of each permit is $1,500?

A) Company X will sell 10 permits to Company Y.
B) Company X will sell 20 permits to Company Y.
C) Company X will buy 20 permits from Company Y.
D) Company X will buy 10 permits from Company Y.