We are in a world with one person, and two firms. The two firms are het- erogeneous in their cost to reduce pollution. Assume the marginal damage of pollution to the one person is $1 per unit of pollution (hence the marginal benefit of pollution reduction is $1 per unit). The 2 firms are heterogeneous in their cost of pollution reduction. One has low (L) and one has high (H) cost of pollution reduction q: cH (q) = 2q2 H cL(q) = q2. Please compare the pollution reduction decision according to price reg- ulation (corrective $ 1 subsidy per unit of pollution reduction), quantity regulation (0.75 total units) , and quantity regulation (0.75 total units) with tradable permits