Regulations that strictly limit pollution
A)provide firms no incentives to reduce pollution once a standard is met.
B)provide incentives for firms to discover loopholes in the regulations.
C)tend to be economically inefficient ways to reduce pollution.
D)All of the above are true.

Question

Quizplus · Accepted Answer

Strict pollution regulations can lead to firms only meeting the minimum standards (A), seeking loopholes to avoid compliance (B), and often result in higher costs compared to more flexible approaches like market-based solutions (C).

Regulations That Strictly Limit Pollution