Two firms,A and B,each currently dump 50 tonnes of chemicals into the local river.From now on both firms will require a pollution permit for each tonne of pollution dumped into the river.The government will sell 40 pollution permits for $75 each.It costs Firm A $100 for each tonne of pollution that it eliminates before it reaches the river,and it costs Firm B $50 for each tonne of pollution that it eliminates before it reaches the river.Between the cost of permits and the cost of additional pollution abatement,what is likely to happen
A)Firm B will spend $3000.
B)Firm B will spend $3500.
C)Firm A will spend $4000.
D)Firm A will spend $4500.

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The Answer of Two firms,A and B,each currently dump 50 tonnes of chemicals into the local river.From now on both firms will require a pollution permit for each tonne of pollution dumped into the river.The government will sell 40 pollution permits for $75 each.It costs Firm A $100 for each tonne of pollution that it eliminates before it reaches the river,and it costs Firm B $50 for each tonne of pollution that it eliminates before it reaches the river.Between the cost of permits and the cost of additional pollution abatement,what is likely to happen
A)Firm B will spend $3000.
B)Firm B will spend $3500.
C)Firm A will spend $4000.
D)Firm A will spend $4500.

Two Firms,A and B,each Currently Dump 50 Tonnes of Chemicals