If it costs Con Ed approximately $20 per additional ton of air pollution abated, but it costs PG&E only $10 per additional ton of air pollution abated, a marketable pollution permit trading for $14 per ton could
A)save PG&E $4 per ton and earn Con Ed $6 per ton.
B)earn PG&E $4 per ton and save Con Ed $6 per ton.
C)save PG&E $6 per ton and earn Con Ed $4 per ton.
D)earn PG&E $6 per ton and save Con Ed $4 per ton.

Question

Quizplus · Accepted Answer

PG&E would save money by buying permits for $14 instead of spending $20 to abate pollution themselves, saving $6 per ton. Con Ed would earn money by selling permits for $14 instead of spending $10 to abate pollution, earning $4 per ton.

If It Costs Con Ed Approximately $20 Per Additional Ton