Consider a Coal- Fired Electric- Power Plant That Is Operating

Consider a coal- fired electric- power plant that is operating under a system of tradable pollution permits. If its marginal cost of pollution abatement is $100 per unit and the price of the permit is
$150 per unit, this firm will

A) sell permits and abate more pollution.
B) not buy any permits, since that would push up its costs.
C) buy permits and abate more pollution.
D) buy permits and abate less pollution.
E) not abate at all.