Under a System of Transferable Pollution Rights, Which of the Following

Multiple Choice

Under a system of transferable pollution rights, which of the following firms is most likely to purchase a $500 permit to emit a ton of pollutants in to the atmosphere?

A) ​a non-polluting firm
B) ​a polluting firm that can reduce emissions at a cost of $500 per ton
C) ​a polluting firm that can reduce emissions at a cost of $200 per ton
D) ​a polluting firm that can reduce emissions at a cost of $600 per ton