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38) Refer to Figure 176. Suppose that a system of tradable pollution permits is introduced into this 38) market and the equilibrium permit price is

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38) Refer to Figure 176. Suppose that a system of tradable pollution permits is introduced into this 38) market and the equilibrium permit price is p\". Firm B will buy permits from Firm A because A) its total cost of abating less (areas 1 +2 +3) exceeds the cost of buying the permits (areas 2+3). B) Firm B can buy the permits at a lower price than Firm A

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