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With Marketable Permits to Pollute, Efficiency Can Be Obtained If

Question 46

Multiple Choice

With marketable permits to pollute, efficiency can be obtained if


A) the regulator knows the marginal cost schedule of every firm.
B) firms with low marginal costs of eliminating pollution sell their permits.
C) firms with low marginal costs of eliminating pollution buy up more permits.
D) only one firm gets the permits to pollute.

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