Suppose that two firms emit a certain pollutant . the marginal cost of reducing pollution for each firm is as follow: mc1=300e1, and mc2=100e2,where e1 and e2 are the amounts(in tons) of emission reduced by the first and second firm, respectively. assume that in the absence of government intervention, firm 1 generate 100 units of emission and firm 2 generates 80 units of emissions. suppose that instead of an emissions fee, the regulatory agency introduces a tradable permit system and issues 100 permits, each of which allows the emission of one ton of pollution. firm 1 uses its political influence to convince the regulatory agency to issue 80 permits to itself, and only 20 permits to firm 2. how many, if any, permits are traded between the firms?

"in the electricity industry, low average total costs are obtained only through large-scale production. in other words, the initial cost of setting up all the necessary wiring makes it risky and, most likely, unprofitable for competitors to enter the market. throughout much of the 20th century, many people viewed south africa’s de beers group as a monopoly because it controlled a large percentage of diamond production and sales. patents are granted to inventors of a product or process for a certain number of years. the reason for this is to encourage innovation in the economy. without the existence of patents, it is argued, research and development for improved electronics is unlikely to take place, since there’s nothing preventing another firm from stealing the idea, copying the product, and producing it without incurring the devel opment costs."which of the following best explains the barriers to entry that exist in this scenario? increasing returns to scale legal barriers exclusive ownership of a necessary resource