The Most Efficient Way to Get Firms to Reduce Pollution

Multiple Choice

The most efficient way to get firms to reduce pollution is to

A) set uniform emission standards and require all firms to meet the standards.
B) make the worst polluters shut down and go out of business.
C) make them pay for the social costs of production and let them decide how to respond to the higher costs.
D) provide firms and consumers with the information about the effects of their actions and encourage them to behave responsibly.