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Tradable Pollution Permits Achieve a Given Emission Target Efficiently Because

Question 89

Multiple Choice

Tradable pollution permits achieve a given emission target efficiently because:


A) firms can bargain over the price of the permits.
B) permits will be purchased by the firms that incur the least abatement cost.
C) permits will be purchased by the firms that incur high abatement costs.
D) the polluting firms will eventually go out of business.

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