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In a Deposit-Refund System

Question 29

Multiple Choice

In a deposit-refund system,


A) the refund component compensates the consumer for proper waste disposal or recycling activities
B) the deposit component should be set equal to the MSC of illegal waste production
C) the costs of monitoring and enforcement are higher than if a pollution charge were used
D) actual polluters are not penalized for decisions that pose a risk to the environment

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