Consider a coal-fired electric-power plant that is operating under a system of tradable pollution permits (and the firm currently owns permits) .If its marginal cost of pollution abatement is $100 per unit and the price of the permit is $150 per unit,this firm will
A) not abate at all.
B) not buy any permits,since that would push up its costs.
C) buy more permits and abate more pollution.
D) buy more permits and abate less pollution.
E) sell permits and abate more pollution.
Correct Answer:
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