Under Cap and Trade Systems

Multiple Choice

Under cap and trade systems

A) an upper limit is set that sets the marginal social costs equal to the marginal benefits of emissions.
B) an upper limit that sets marginal private costs equal to the marginal private benefits of emissions.
C) an upper limit that sets marginal social costs equal to the marginal private benefits of production.
D) an upper limit that sets marginal private costs equal to the marginal social benefits of production.