What are marketable permits? Suppose there are two firms in an area,each emitting tons of sulfur.The government decides on a target level of 200 tons of sulfur,and gives each firm a permit to emit 100 tons of sulfur.Suppose Firm A is very efficient and can reduce pollution by 100 tons with an abatement cost of $500.Firm B has an older plant,so it will cost Firm B $1,000 to reduce emissions by 100 tons.What will occur with marketable permits?

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The Answer of What are marketable permits? Suppose there are two firms in an area,each emitting tons of sulfur.The government decides on a target level of 200 tons of sulfur,and gives each firm a permit to emit 100 tons of sulfur.Suppose Firm A is very efficient and can reduce pollution by 100 tons with an abatement cost of $500.Firm B has an older plant,so it will cost Firm B $1,000 to reduce emissions by 100 tons.What will occur with marketable permits?

What Are Marketable Permits? Suppose There Are Two Firms in an Area,each