The government allows sulphur dioxide emissions of 4 parts per billion (for each firm) and has a tradable permits program. The 2 firms in the market pollute at a rate of 5 parts per billion and 6 parts per billion respectively. The 2 firms have the following costs to reduce emissions. The most efficient strategy would be to: Reduction of Sulphur Dioxide Cost - Firm 1 Cost - Firm 2 By 1 part per billion $150,000/year $80,000/year By 2 parts per billion $400,000/year $200,000/year By 3 parts per billion $700,000/year $340,000/year By 4 parts per billion $1,200,000/year $650,000/year Responses reduce overall emissions by 3 parts per billion by having firm 2 reduce emission by 3 parts per billion and sell their permit to emit 1 part per billion to firm 1. reduce overall emissions by 3 parts per billion by having firm 2 reduce emission by 3 parts per billion and sell their permit to emit 1 part per billion to firm 1. reduce overall emissions by 3 parts per billion by having firm 2 reduce emission by 2 parts per billion and firm1 reduce emission by 1 part per billion. reduce overall emissions by 3 parts per billion by having firm 2 reduce emission by 2 parts per billion and firm1 reduce emission by 1 part per billion. reduce overall emissions by 3 parts per billion by having firm 1 reduce emission by 3 parts per billion and sell their permit to emit 1 part per billion to firm 2