A Uniform Per-Unit Tax on Pollution Achieves Abatement in the Least

question 11

Multiple Choice

A uniform per-unit tax on pollution achieves abatement in the least costly manner because:

• A)the government is completely informed about the marginal costs of installing environment friendly equipment to the firms.
• B)the government subsidizes the equipment required for pollution control.
• C)each firm will ensure that reduce pollution to zero.
• D)each firm reduces pollution until the marginal cost of abatement equals the per-unit tax.

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Definitions:

Rescind

To withdraw, negate, or overturn a law, order, or agreement.

Asserted

Stated with confidence or declared strongly, typically without providing evidence or proof.

Concealment

The act of hiding or withholding information or facts intentionally.

Nondisclosure

Refers to the act of not sharing certain information that is usually confidential or proprietary.