Multiple Choice
With a system of cap and trade, one of the main problems is determining the _____, while with emissions taxes, the main problem is determining the _____.
A) optimal quantity of pollution; optimal tax rate
B) optimal price of permits; optimal quantity of pollution
C) optimal quantity of pollution; marginal social benefit of pollution
D) marginal social cost of pollution; optimal tax rate
Correct Answer:
Verified
Correct Answer:
Verified
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