Compared to a Fixed-Percentage Reduction Regulation,a Tax on Pollution Encourages

Multiple Choice

Compared to a fixed-percentage reduction regulation,a tax on pollution encourages

A) all firms to reduce pollution by the same percentage.
B) all firms to use the same technology to reduce pollution.
C) firms that can most cheaply reduce pollution to make sizeable reductions.
D) firms that find pollution reduction expensive to pollute even more.
E) economic inefficiency.