Firm a and Firm B Both Produce a Good That

question 208

Multiple Choice

Firm A and firm B both produce a good that causes pollution, but the firms differ in their marginal benefit from pollution.In this case, an emissions standard would:

• A)reduce pollution in the most effective manner.
• B)lead to an unequal reduction in pollution for both firms.
• C)not be efficient, since it does not take into account differences in marginal benefits.
• D)be preferred to an emissions tax, since it takes into account differences in marginal benefits.

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Definitions:

Overtime

Additional time worked by an employee beyond their regular working hours, typically compensated at a higher pay rate.

Environmental Regulations

Laws and policies aimed at protecting the environment by setting standards and guidelines for pollution control, resource management, and ecosystem preservation.

Legal

Pertains to matters related to the law, including regulations, rights, and obligations that govern individuals and entities.

Ethical

Morally right or acceptable according to principles of conduct that govern the behavior of a person or organization.