For a fixed percent reduction in pollution emissions to be economically efficient, it would have to be the case that
A)the marginal cost of pollution control is the same across all firms.
B)enforcement is vigorous.
C)all firms be the same size.
D)large polluters reduce emissions by more than small polluters.

Question

Quizplus · Accepted Answer

If all firms have the same marginal cost of pollution abatement, then it is efficient for all firms to reduce pollution by the same amount. Otherwise, it is efficient for firms with the lowest cost of pollution abatement to reduce pollution the most.

For a Fixed Percent Reduction in Pollution Emissions to Be