An advantage of tradable permits over command and control policies is that

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Tradable permits, also known as cap-and-trade systems, allow for flexibility among firms in how they meet overall pollution reduction goals. Firms with lower abatement costs can sell their excess permits to firms with higher costs, leading to a cost-effective distribution of pollution reduction efforts. This system does not require policymakers to know the specific abatement costs of each firm to achieve an optimal outcome, as the market for permits will naturally adjust to reflect these costs. Choices B, C, and D do not accurately describe advantages of tradable permits over command and control policies.

An Advantage of Tradable Permits Over Command and Control Policies