Direct Pollution Controls Are Usually Inefficient Because They

question 129

Multiple Choice

Direct pollution controls are usually inefficient because they

• A)do not minimize the total cost of a given amount of abatement.
• B)lead all firms to abate more pollution than the socially optimal amount.
• C)lead all firms to abate less pollution than the socially optimal amount.
• D)do not achieve the targeted amount of pollution abatement.
• E)are controlling quantities of pollution abatement as opposed to prices.

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Definitions:

Machine-Hours

A measure of production time using machinery; used as a basis for allocating manufacturing overhead costs to products.

Machine-Hours

A measure of the total time that machines are operating during a specific period.

Direct Labor-Hours

The total amount of time spent by workers directly involved in the production of goods, measured in hours.

Total Job Cost

The cumulative cost of materials, labor, and overhead for a specific job, useful in tracking expenses and determining profitability for that job.