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If a Company Dumps Pollution in the Water and Fishermen

Question 3

Multiple Choice

If a company dumps pollution in the water and fishermen are hurt and if transactions costs are prohibitively high and efficiency is the most important criteria,


A) the company should be made liable for the damage.
B) liability should be placed on the group that has the least cost of solving the problem.
C) the company should be allowed to pollute because a river is not private property.
D) the company should be taxed enough so the government can keep the river clean.

Correct Answer:

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