Table 28.1Reduction in Emissions (in tons)MC to Reduce Emissions by Steel PlantMC to Reduce Emissions by Paper Plant1$400$20025002803600320Refer to Table 28.1. Suppose the government allows these two firms to trade pollution permits. The most efficient transaction would result in
A. The paper plant reducing its emissions.
B. Zero pollution.
C. The steel plant reducing its emissions.
D. Both plants reducing their emissions.
Answer: A
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