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The Following Graph Shows the Optimal Allocation of Pollution Rights

Question 41

Multiple Choice

The following graph shows the optimal allocation of pollution rights to firms polluting a river. If the government sells the right to pollute a river, _____.​ ​
Figure 17.5
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The following graph shows the optimal allocation of pollution rights to firms polluting a river. If the government sells the right to pollute a river, _____.​ ​ Figure 17.5 ​ A) firms will emit Q<sub>1</sub> units of the pollutant at a price of P<sub>0</sub> each B) firms will emit Q<sub>2</sub> units of the pollutant at a price of P<sub>0</sub> each C) firms will emit Q<sub>0</sub> units of the pollutant at a price of P<sub>3</sub> each D) firms will emit Q<sub>1</sub> units of the pollutant at a price of P<sub>1</sub> each​ E) firms will emit Q<sub>2</sub> units of the pollutant at a price of P<sub>3</sub> each​


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 P3 each​

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