A command-and-control policy
A) usually does not result in the use of the most efficient pollution abatement technology.
B) does not affect the production costs of firms.
C) usually finds the most efficient pollution abatement technology.
D) increases the incentive for firms to develop efficient abatement technologies.

Question

Quizplus · Accepted Answer

A command-and-control policy sets a specific regulation or standard for the maximum amount of pollution that a firm can emit, but it does not give incentives for firms to use the most efficient pollution abatement technology. This is because firms may choose to comply with the regulation using the cheapest technology available rather than investing in more efficient technology that may be costlier. As a result, a command-and-control policy may not result in the use of the most efficient pollution abatement technology.

A Command-And-Control Policy