Consider the Production of Pesticide That Pollutes a Lake Used

Multiple Choice

Consider the production of pesticide that pollutes a lake used by a trout farmer.A marketable permit

A) creates an efficient outcome when the price of the permit is set equal to the external cost.
B) cannot result in the same outcome as when property rights are assigned to the pesticide producer.
C) cannot result in the same outcome as when property rights are assigned to the trout farm.
D) cannot result in the same outcome as when the government imposes a Pigovian tax.
E) creates an efficient outcome when the price of the permits is set equal to the external benefit.