Table 281 Refer to Table 28

Table 28.1 $\begin{array}{|c|r|r|}\hline\begin{array}{c}\text { Reduction in Emissions } \\\text { (in tons) }\end{array} & \begin{array}{c}\text { MC to Reduce Emissions by } \\\text { SteelPlant }\end{array} & \begin{array}{c}\text { MC to Reduce Emissions by } \\\text { Paper Plant }\end{array} \\\hline 1 & \$ 400 & \$ 200 \\\hline 2 & 500 & 280 \\\hline 3 & 600 & 320 \\\hline\end{array}$
Refer to Table 28.1.Suppose the government allows these two firms to trade pollution permits.The most efficient transaction would result in

A) Zero pollution.
B) The steel plant reducing its emissions.
C) The paper plant reducing its emissions.
D) Both plants reducing their emissions.

Correct Answer:

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