If the objective of economic policy is to decrease the amount of pollution by an industry in the long run, the
A) most effective policy action would be a subsidy to firms for the reduction of emissions.
B) most effective policy action would be a tax on polluting firms.
C) appropriate course of action for government is to do nothing.
D) appropriate course of action for government is to increase R&D outlays to develop technology to remove the emissions from the environment.
Correct Answer:
Verified
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