If a market for tradable allowances exists, a company that has used up its own allowances can:
A) buy allowances from another firm that has surpassed its limit of pollution.
B) purchase additional allowances from the EPA on a temporary basis.
C) pay a fine to the EPA and purchase additional allowances from other firms.
D) buy allowances from another firm that will not reach its limit of pollution.

Question

Quizplus · Accepted Answer

In a market for tradable allowances, companies that have used up their allowances can buy additional allowances from other firms that have not reached their pollution limits.

If a Market for Tradable Allowances Exists, a Company That