The following graph shows the optimal allocation of pollution rights to firms polluting a river. If the government does not charge firms for polluting the river, the ______.
Figure 17.5
A) firms will emit Q1 units of the pollutant at a price of P0 each
B) firms will emit Q2 units of the pollutant at a price of P0 each
C) firms will emit Q0 units of the pollutant at a price of P3 each
D) firms will emit Q1 units of the pollutant at a price of P1 each
E) firms will emit Q2 units of the pollutant at a price of P0 each.
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