Which of the following is not a reason why marketable permits may fail to achieve efficiency?
A) Some firms can reduce emissions at a lower cost than other firms.
B) A market with a small number of buyers and sellers.
C) Imperfect information exists on the value of a permit.
D) There are concerns about the value of permits in the future.
Correct Answer:
Verified
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A)
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Q56: Exhibit 14-1 Private and social cost
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