If the pollution control costs are low but the carbon tax is high, firms are encouraged to:

Question

Quizplus · Accepted Answer

When the pollution control costs are low, it becomes an economically feasible solution for firms to install pollution control equipment, rather than paying a high carbon tax. This will not only reduce their carbon emissions and help them comply with environmental standards but also save them money in the long run, as they can avoid or reduce carbon taxes. Therefore, option B is the best choice in this scenario.

If the Pollution Control Costs Are Low but the Carbon