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Suppose That a Vehicle Is Invented Such That It Emits

Question 19

Multiple Choice

Suppose that a vehicle is invented such that it emits no pollutants into the atmosphere.To achieve an efficient market outcome,the government must


A) allow other vehicles that emit pollutants into the atmosphere, as long as vehicle owners pay all the costs associated with their pollution.
B) outlaw SUVs and other vehicles that pollute the environment.
C) be the sole producer of that vehicle.
D) require all auto makers to produce the vehicles that produce zero emissions.

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