The Diagram Below Shows the Market for Tradable Pollution Permits

The diagram below shows the market for tradable pollution permits. Figure 17- 7
-Refer to Figure 17- 7, which depicts the market for tradable pollution permits. The equilibrium price p*

A) is not a function of the abatement technology.
B) is always equal to the subsidy provided by the government.
C) equals the average abatement cost for firms.
D) is imposed by the government.
E) equals the marginal abatement cost for each profit- maximizing firm.