Question:

(Table: Pollution from Firms} Suppose that each rm emitls 10 units of pollution, for a total of 20 units. The government would like to decrease total pollution to 11} units by giving each rm ve tradable pollution permits. Quantity of Firm A's Marginal Firm B's Marginal Pollution Abatement Cast Abatement Cost l 1 DD 2 90 - ?D so 30 20 Under the tradable permit system, Firm A will emit units of pollution