Under a Transferable Emissions Permit System with N Possible Polluters,the

question 102

Multiple Choice

Under a transferable emissions permit system with n possible polluters,the government enforces the total amount of emissions allowable at X by

• A)setting a different fee for each firm so that each firm chooses to emit X/n units.
• B)setting the same fee for each firm so that each is forced to emit X/n units.
• C)setting a different standard for each firm,with X/n being the average.
• D)setting the same standard for each firm at X/n.
• E)issuing X permits.

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