Firms Are Likely to Prefer a Pollution Tax to a Command-And-Control

Multiple Choice

Firms are likely to prefer a pollution tax to a command-and-control policy because the command-and-control policy will

A) increase the costs of production more than a pollution tax.
B) result in the price of the good rising more than under a pollution tax.
C) result in consumers buying less of the good than under a pollution tax.
D) all of the above