Which of the Following Statements Is True of Both Pollution

question 404

Multiple Choice

Which of the following statements is true of both pollution permits and corrective taxes?

• A)Both policies internalize the externality of pollution.
• B)Both policies require firms to pay for their pollution.
• C)Both policies lead to the establishment of an equilibrium price of pollution.
• D)All of the above are correct.

---

Definitions:

Inventory Model

An analytical approach or mathematical formula used to manage and control stock levels, optimizing inventory costs and meeting demand.

Ordering Cost

The cost of the ordering process.

Carrying Cost

Carrying cost refers to the total cost of holding inventory, including storage, insurance, spoilage, and opportunity costs.

Virtual Retailer

A business that sells goods or services online rather than through a physical storefront.