If a Market for Tradable Allowances Exists, a Company That

Multiple Choice

If a market for tradable allowances exists, a company that has used up its own allowances can:

A) buy allowances from another firm that has surpassed its limit of pollution.
B) purchase additional allowances from the EPA on a temporary basis.
C) pay a fine to the EPA and purchase additional allowances from other firms.
D) buy allowances from another firm that will not reach its limit of pollution.