The problem with using command and control policies to eliminate external costs is that there are typically many methods to achieve a goal and:
A) consumers may be reluctant to follow.
B) the situation may be difficult for the government to control.
C) the goal itself may not necessarily be the socially optimal outcome.
D) the government may not have enough information to choose the least costly methods.

Question

Quizplus · Accepted Answer

Command and control policies may not be efficient because the government may lack the necessary information to identify and implement the least costly methods to achieve the desired outcome.

The Problem with Using Command and Control Policies to Eliminate