The Reason Why Cleanup Costs Are Lower for a Taxes

Multiple Choice

The reason why cleanup costs are lower for a taxes approach than for a direct controls approach is that

A) all firms reduce pollution equally and fairly.
B) firms that are able to clean up at lowest cost do so; others don't.
C) large polluters clean up the most, which is always lowest cost.
D) small polluters clean up the most, which is generally the cheapest.