Individual standards have the same informational requirements as uniform standards.
Individual standards require knowledge of each firm's marginal abatement cost functions as well as the marginal damage cost.

Question

Quizplus · Accepted Answer

Uniform standards set a single standard for all, not requiring detailed knowledge of each firm's costs, whereas individual standards necessitate specific information about each firm's marginal abatement costs and the marginal damage costs to tailor the standards appropriately.

Individual Standards Have the Same Informational Requirements as Uniform Standards