Question

There are three individual firms in happy Valley the government wants to reduce pollution and 90 units so it gives each firm 30 tradable pollution permits Farme has 30 units at five dollars firm be has 45 units at $10 and firm C has 60 units at $20 because firm blank has the highest cost of reducing pollution by one unit it would like to blank another firm because firm blank has the lowest cost of reducing pollution by one unit

Answer 1

Because firm (A,B, C) has the highest cost of reducing pollution by 1 unit, it would like to (sell 30 permits to, buy 30 permits from) another firm.