Exhibit 17-5 -In Exhibit 17-5,if the Government Sells the Right to Pollute

Multiple Choice

Exhibit 17-5
-In Exhibit 17-5,if the government sells the right to pollute a river,

A) firms will emit Q₁ units of pollutant at a price of P₀ each
B) firms will emit Q₂ units of pollutant at a price of P₀ each
C) firms will emit Q₀ units of pollutant at a price of P₃ each
D) firms will emit Q₁ units of pollutant at a price of P₁ each
E) firms will emit Q₂ units of pollutant at a price of P₃ each