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In a Tradeable Effluent Permit Market

Question 43

Multiple Choice

In a tradeable effluent permit market,


A) effluent allowances may be used, but not effluent credits
B) high-cost abaters will buy permits as long as the price is lower than their MAC
C) a permit price should be established where all polluters' MACs are equal
D) all of the above
E) (b) and (c) only

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