Multiple Choice
The figure below shows the marginal pollution abatement costs of two companies - Alpha Electric and Beta Inc.
-Refer to the figure above. Assume that firms are allowed to buy and sell permits. If the government allocates 200 pollution permits to each company and the price of each permit is $300, Beta Inc. will reduce its emission to ________.
A) 100 tons
B) 250 tons
C) 300 tons
D) 350 tons
Correct Answer:

Verified
Correct Answer:
Verified
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