Why Are Direct Controls for Reducing Pollution Likely to Be

Multiple Choice

Why are direct controls for reducing pollution likely to be inefficient?

A) The cost of reducing pollution is greater than the benefit.
B) Direct controls are impossible to monitor.
C) Firms with different pollution abatement costs are facing identical regulations.
D) Firms are not likely to comply with this method of government intervention.
E) Firms' output will rise above the socially optimal amount.