When pollution rights markets are created,those firms who can reduce pollution most cheaply will do so.

Name: When pollution rights markets are created,those firms who can reduce pollution most cheaply will do so.
Brand: Quizplus
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Quizplus · Accepted Answer

This is true as firms who can reduce pollution most cheaply can sell their unused pollution rights to other firms who may find it more expensive to reduce pollution. This creates a market incentive for firms to reduce pollution in the most cost-effective manner.

When Pollution Rights Markets Are Created,those Firms Who Can Reduce