If the Marginal Cost of Pollution Abatement Differs Across Firms

question 34

Multiple Choice

If the marginal cost of pollution abatement differs across firms, then regulations that require all polluters to reduce pollution by a fixed proportion will be:

• A)efficient.
• B)inefficient
• C)ineffective.
• D)fair to all polluters.

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Definitions:

C$ Per US$

The exchange rate determining how much Canadian dollars (C$) you can exchange for one US dollar (US$).

Exchange Rate

The financial value of one currency in the context of another for the purpose of exchange.

C$0.005

Represents a monetary value of five one-thousandths of a Canadian dollar.

C$1.0339

Specified value, possibly representing the exchange rate of 1 Canadian dollar to another currency at a certain point in time.