A Uniform-Abatement Policy Is

question 56

Multiple Choice

A uniform-abatement policy is

• A) inefficient because it does not exploit the differences in abatement costs among firms.
• B) efficient because an equal amount of pollution is assigned to each firm.
• C) inefficient because it incurs relatively low compliance costs.
• D) efficient because it helps firms lower their production costs.

---

Definitions:

Free-riders

Individuals who benefit from resources, goods, or services without paying for them, often seen in public goods and collective risk scenarios.

Private Markets

are markets where transactions are conducted directly between two parties without being publicly traded on an exchange.

Repeat-purchase Item

A good or service that consumers buy frequently or repeatedly over time, indicating loyalty or sustained need.

Frequent Transaction

Regular or repeated exchanges or dealings, especially in a financial context.