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(Table: Pollution from Firms) Suppose That Each Firm Is Emitting

Question 20

Multiple Choice

(Table: Pollution from Firms) Suppose that each firm is emitting 10 units of pollution, for a total of 20 units. The government would like to decrease total pollution to 10 units by giving each firm five tradable pollution permits. (Table: Pollution from Firms)  Suppose that each firm is emitting 10 units of pollution, for a total of 20 units. The government would like to decrease total pollution to 10 units by giving each firm five tradable pollution permits.   Under the tradable permit system, Firm B will emit ____ units of pollution. A)  3 B)  4 C)  5 D)  7 Under the tradable permit system, Firm B will emit ____ units of pollution.


A) 3
B) 4
C) 5
D) 7

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