An important reason that direct controls are usually inefficient in reducing pollution is that

Question

Quizplus · Accepted Answer

Different firms have different marginal costs of pollution abatement, meaning that some firms may find it more expensive to reduce pollution than others. Direct controls do not take into account these differences and can lead to inefficient and costly solutions. It is more efficient to use market-based mechanisms, such as taxes or permits, to achieve the optimal level of pollution reduction.

An Important Reason That Direct Controls Are Usually Inefficient in Reducing