How many units of pollution rights would be purchased and


Once again, in the previous question, suppose that the government's policy is to allow firms to pollute provided that they purchase a permit valued at $10 per unit emitted (rather than allocating a pollution quota to each firm).

(a) How many units of pollution rights would be purchased and by the two participants in this market?

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Econometrics: How many units of pollution rights would be purchased and
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