The figure below shows the marginal pollution abatement costs of two companies - Alpha Electric and Beta Inc.
-Refer to the figure above. Which of the following will happen if the government allocates 200 pollution permits to each company and the price of each permit is $300?
A) Beta Inc. will sell 50 permits to Alpha Electric.
B) Beta Inc. will sell all the permits to Alpha Electric.
C) Beta Inc. will buy all the permits from Alpha Electric.
D) Beta Inc. will buy 50 permits from Alpha Electric.
Correct Answer:
Verified
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