Biology Forums - Study Force

Suppose that there are two firms, each generating three tons of SO2. Suppose also that the government has set a target abatement level of two tons. Under a policy of uniform abatement with permits each firm would receive
A) two non-transferable pollution permits.
B) two pollution permits which they could sell to each other.
C) one pollution permit with a value equal to the market price for a pollution permit.
D) one pollution permit with a value equal to that firm's cost of abating one ton of SO2.

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