If the Marginal Cost of Pollution Abatement Is Different Across

question 47

Multiple Choice

If the marginal cost of pollution abatement is different across firms,then regulations that require fixed-percentage reductions in pollution will be

• A) inefficient.
• B) fair to all polluters.
• C) advantageous to small firms.
• D) efficient.
• E) ineffective.

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Definitions:

Financial Liabilities

Obligations that require a company to pay money or deliver financial assets to another entity in the future.

Financial Guarantees Contracts

Contracts that require the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due.

Derivatives

Financial securities whose value is derived from the value of an underlying asset or benchmark.

AASB 9

The Australian Accounting Standards Board standard covering the classification, measurement, and recognition of financial assets and financial liabilities.