Regulations require that emissions of carbon monoxide be limited to 1,000 tons per 100 square miles for all regions of the nation.If the marginal external cost of the emissions varies among regions in the nation, then the regulations will:

Question

Quizplus · Accepted Answer

If the marginal external cost of emissions varies among regions, the efficient amount of pollution abatement would also vary among regions. Therefore, a uniform limit for all regions would result in over-abatement in some regions and under-abatement in others, leading to the possibility of achieving more than the efficient amount of abatement in some regions but less than the efficient amount in others.

Regulations Require That Emissions of Carbon Monoxide Be Limited to 1,000