The Following Graph Shows the Optimal Allocation of Pollution Rights

Multiple Choice

The following graph shows the optimal allocation of pollution rights to firms polluting a river. If the government does not charge firms for polluting the river, the ______.​ ​
Figure 17.5
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A) firms will emit Q₁ units of the pollutant at a price of P₀ each
B) firms will emit Q₂ units of the pollutant at a price of P₀ each​
C) firms will emit Q₀ units of the pollutant at a price of P₃ each​
D) firms will emit Q₁ units of the pollutant at a price of P₁ each​
E) firms will emit Q₂ units of the pollutant at a price of P₀ each​.