Assume That Large Firms Can Reduce Pollution Emissions More Cheaply

question 5

Multiple Choice

Assume that large firms can reduce pollution emissions more cheaply than small firms.A fixed-percentage reduction in pollution emissions would therefore

• A) penalize large and small firms equally.
• B) penalize large firms more.
• C) ensure the reduction in pollution was achieved at the lowest cost.
• D) penalize smaller firms more.
• E) ensure that for the amount spent,the largest reduction in pollution was gained.

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