Direct Controls Are Generally Much More Costly Than Emissions Taxes

Multiple Choice

Direct controls are generally much more costly than emissions taxes because

A) under direct controls emissions cutbacks are usually not apportioned among the firms on the basis of their ability to reduce pollution cheaply and efficiently.
B) emissions tax per unit of output is higher than the per-unit direct control program cost.
C) government cannot legally levy emissions taxes that are as high.
D) firms disregard emissions taxes.