Direct Controls for Reducing Pollution Are Likely to Be Inefficient

Direct controls for reducing pollution are likely to be inefficient because

A) firms' output will rise above the socially optimal amount.
B) firms are not likely to comply with this method of government intervention.
C) firms with different pollution abatement costs are facing identical regulations.
D) the cost of reducing pollution is greater than the benefit.
E) direct controls are impossible to monitor.