Question 31 Two firms A and Beach currently dump 50 tons of chemicals in the local river. The government has decided to reduce pollution by 50 tons. The government is deciding what policy to use and looks at a regulation stating the no firm can dump more than 25 tons or using tradable pollution permit. Each firm would be given 25 permits by the government and one permit is needed for each ton of chemicals dumped into the river. The permits can be used or sold to other companies. It costs firm A $100 for each ton of pollution that it eliminates before it reaches the river. It costs firm B $50 for each ton of pollution it eliminates. A. What is the cost to clean up using the regulation approach? B. What is the cost to clean up using the tradable permit approach" C. Which approach is more efficient and why