The Diagram Below Shows the Marginal Cost of Abatement for Each

The diagram below shows the marginal cost of abatement for each of two firms, A and B. Each firm is initially abating Q0 units of pollution. FIGURE 17- 6
-Refer to Figure 17- 6. Suppose that a system of tradable pollution permits is introduced into this market and the equilibrium permit price is p*. The effect will be that

A) Firm B will abate less pollution-the amount Q2, and Firm A will abate more pollution-the amount Q1.
B) Firms A and B will each abate Q0 units of pollution.
C) Firms A and B will each abate Q2 units of pollution.
D) there will be no change in the quantity of abatement by each firm.
E) Firm A will abate less pollution-the amount Q2, and Firm B will abate more pollution-the amount Q1.