The figure below shows the marginal pollution abatement cost curves of two firms- Company X and Company Y.

-Refer to the figure above. Which of the following will happen if the government allocates 30 pollution permits to each company and the price of each permit is $1,500?
A) Company X will sell 10 permits to Company Y.
B) Company X will sell 20 permits to Company Y.
C) Company X will buy 20 permits from Company Y.
D) Company X will buy 10 permits from Company Y.
Correct Answer:
Verified
Q40: The figure below shows the marginal pollution
Q41: The figure below shows the marginal pollution
Q42: The figure below shows the marginal pollution
Q43: The figure below shows the marginal pollution
Q44: The figure below shows the marginal pollution
Q46: The figure below shows the marginal pollution
Q47: The figure below shows the marginal pollution
Q48: The figure below shows the marginal pollution
Q49: The figure below shows the marginal pollution
Q50: The figure below shows the marginal pollution
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