Multiple Choice
Which of the following is an advantage of tradable pollution permits?
A) Each firm is allowed to pollute exactly the same amount.
B) Revenue from the sale of permits is greater than revenue from a corrective tax.
C) The initial allocation of permits to firms does not affect the efficiency of the market.
D) Firms will engage in joint research efforts to reduce pollution.
Correct Answer:
Verified
Correct Answer:
Verified
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