Refer to HW12 Q9. Suppose the EPA had given 30 pollution permits to Firm A and only 20 permits to Firm B. How would the cost of pollution reduction with tradeable permits change from the answer in HW12 Q9. Company NO2 Emission Cost per ton of NO2 reduction Firm A 60 tons $1,200 Firm B 40 tons $800 Total 100 tons Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a The total cost of pollution reduction would stay the same. The total cost of pollution reduction would increase. C The total cost of pollution reduction would decrease. d Cannot say.There are two polluting firms - Firm A and Firm B. The amount of Nitrogen Dioxide pollution generated and the cost per ton of pollution reduction is given in the table below. The EPA wants to cut Nitrogen Dioxide levels by 50%. So it issues 50 permits to the two firms, each getting 25 permits. Each permit allows the firm to emit 1 ton of Nitrogen Dioxide. If Firm A and Firm B can trade permits with each other, how many permits will be exchanged between A and B and what will be the total cost of pollution reduction? Company NO, Emission Cost per ton of NO2 reduction Firm A 60 tons $1,200 Firm B 40 tons $800 Total 100 tons Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Firm A will sell all of its 25 permits to Firm B and the total cost of cutting pollution by half will be $72,000. b Firm A will sell 15 permits to Firm B and the total cost of pollution reduction will be the total cost of cutting pollution by half will be $60,000. C Firm B will sell all of its 25 permits to Firm A and the total cost of cutting pollution by half will be $44,000. d Firm B will sell all of its 25 permits to Firm A and the total cost of cutting pollution by half will be $32,0000HW12 Q6 Homework . Answered Consider a good with external benefits. Which of the following best describes why the market does not produce an allocati efficient amount? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. The marginal private cost of production equals both the marginal private benefit of production and the marginal social a benefit of production. b The marginal private cost of production equals the marginal private benefit of production but is less than the marginal social benefit of production. C The marginal private cost of production exceeds the marginal social benefit of production but equals the marginal private benefit of production. d The marginal private benefit of production exceeds both the marginal private cost of production and the marginal social benefit of production