Once the Tradable Pollution Permits Have Been Issued to Firms

Multiple Choice

Once the tradable pollution permits have been issued to firms,

A) each firm will reduce the level of pollution it generates.
B) the government determines the price of the permits.
C) firms with the highest cost of pollution abatement will have the greatest willingness to pay for the permits.
D) firms with very low pollution abatement costs will purchase more permits.