If an Abatement Standard Is Set to Achieve Allocative Efficiency

question 14

Multiple Choice

If an abatement standard is set to achieve allocative efficiency at the national level, then

• A) that standard necessarily achieves allocative efficiency in all regions
• B) the standard cannot be optimal at the regional level unless the MSB and MSC for all regions are identical to one another
• C) all regions will abate below the optimal level
• D) at that abatement standard, all regions will face MSC higher than MSB

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