With Marketable Permits to Pollute, Efficiency Can Be Obtained If

question 46

Multiple Choice

With marketable permits to pollute, efficiency can be obtained if

• A) the regulator knows the marginal cost schedule of every firm.
• B) firms with low marginal costs of eliminating pollution sell their permits.
• C) firms with low marginal costs of eliminating pollution buy up more permits.
• D) only one firm gets the permits to pollute.

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Definitions:

Poor Planning

Inadequate preparation or foresight, often leading to failures or suboptimal outcomes in projects or activities.

Unmotivated Owners

Refers to individuals who possess ownership in a business but lack interest, enthusiasm, or the drive to actively engage, lead, or improve the venture.

Government Loans

Financial sums lent to individuals or entities by government bodies, often with lower interest rates and longer repayment terms than private loans.

Government Purchasing Programs

Initiatives or schemes implemented by the government to buy or procure goods and services, often to support domestic producers or fulfill public service mandates.