Which of the Following Are True of Tradeable Pollution Permits

Multiple Choice

Which of the following are true of tradeable pollution permits? (i) they will be sold by firms that can reduce pollution at low costs
(ii) they will be bought by firms that can reduce pollution only at high costs
(iii) they are likely to create a higher level of total pollution

A) (i) , (ii) and (iii)
B) (iii) only
C) (ii) and (iii) only
D) (i) and (ii) only