Direct Controls for Reducing Pollution Are Likely to Be Inefficient

question 64

Multiple Choice

Direct controls for reducing pollution are likely to be inefficient because

• A)firms' output will rise above the socially optimal amount.
• B)firms are not likely to comply with this method of government intervention.
• C)firms with different pollution abatement costs are facing identical regulations.
• D)the cost of reducing pollution is greater than the benefit.
• E)direct controls are impossible to monitor.

---

Definitions:

Industry

The organized action of making goods and services available for consumer use through the production, manufacturing, or construction processes.

Payoff Matrix

A table that shows the potential outcomes of different strategies in a game or decision-making situation.

Compete

The act of entities striving against each other to attain a goal, such as a higher market share or win.

Cooperate

The act of working together towards a common goal or benefit.