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A Marketable Permit

Question 133

Multiple Choice

A marketable permit


A) allows firms to pollute all they want without any cost.
B) allows firms to buy and sell the right to pollute at government controlled prices.
C) eliminates pollution by setting the price of pollution permits above the marginal cost of polluting.
D) allows firms to buy and sell the right to pollute.
E) is the Coase theorem solution to pollution.

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