Suppose That a Vehicle Is Invented Such That It Emits

question 89

Multiple Choice

Suppose that a vehicle is invented such that it emits no pollutants into the atmosphere. To achieve an efficient market outcome, the government must:

• A) outlaw SUV and other vehicles that pollute the environment.
• B) allow other vehicles that emit pollutants into the atmosphere, as long as vehicle owners pay all the costs associated with their pollution.
• C) require all auto makers to produce the vehicles that produces zero emissions.
• D) be the sole producer of that vehicle.

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