Which of the Following Statements Is True Regarding the Efficiency

Multiple Choice

Which of the following statements is true regarding the efficiency of using pollution fees or quantity standards to regulate pollution?

A) Quantity standards are more efficient than pollution fees because they can be used even in the presence of incomplete information.
B) Pollution fees are more efficient than quantity standards because the cost of abatement of pollution is equal across firms.
C) Quantity standards are more efficient than pollution fees because they allow for more flexibility and adjustment.
D) Pollution fees are more efficient than quantity standards because they reduce the cost of abatement of pollution.
E) Pollution fees are more efficient than quantity standards because they reduce the total amount of pollution in the environment.