Multiple Choice
Figure 10-15
-Refer to Figure 10-15. Which of the following is not necessary in order for the corrective tax and pollution permit to have equivalent effects?
A) PB must be equivalent to the corrective tax.
B) QA must be equivalent to the amount of pollution allowed to the pollution permit holders.
C) The equilibrium price and quantity of pollution must be the same in both graphs.
D) The amount of pollution emitted by each firm must be the same.
Correct Answer:

Verified
Correct Answer:
Verified
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