Suppose Plant A and Plant B are currently emitting 4 tons of pollution each. Government requires each plant to reduce emissions by two tons and issues two one-ton marketable pollution permits to each plant. Will any permits be traded?
A.	Yes, Plant A would be willing to buy one permit from Plant B.
B.	Yes, Plant B would be willing to buy one permit from Plant A.
C.	Yes, Plant B would be willing to buy two permits from Plant A.
D.	Both firms’ costs of control are so high that no trading will occur.
Answer:B
Suppose Plant A and Plant B are currently emitting 4 tons of pollution each. Government requires each plant to reduce emissions by two tons and issues two one-ton marketable pollution permits to each plant. Will any permits be traded?
A.	Yes, Plant A would be willing to buy one permit from Plant B. B.	Yes, Plant B would be willing to buy one permit from Plant A. C.	Yes, Plant B would be willing to buy two permits from Plant A. D.	Both firms’ costs of control are so high that no trading will occur.