The Purpose of an Effluent Fee Is to

question 253

Multiple Choice

The purpose of an effluent fee is to

• A) reduce the amount produced of a good and to raise the market price.
• B) correct for pollution while keeping the price of the good the same as before the correction.
• C) reward people producing externalities.
• D) encourage producers to keep the quantity produced the same while lowering the price.

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