Solution Found!
Command-and-control regulation may be better than a corrective tax if a. a corrective tax would have differential effects on different industries. b. some polluters can reduce emissions more cheaply than others. c. the negative externality is so large that the optimal quantity is zero. d. knowledge about the cost of pollution abatement is dispersed and hard to obtain
Chapter 10, Problem 6(choose chapter or problem)
Command-and-control regulation may be better than a corrective tax if
a. A corrective tax would have differential effects on different industries.
b. Some polluters can reduce emissions more cheaply than others.
c. The negative externality is so large that the optimal quantity is zero.
d. Knowledge about the cost of pollution abatement is dispersed and hard to obtain
Questions & Answers
QUESTION:
Command-and-control regulation may be better than a corrective tax if
a. A corrective tax would have differential effects on different industries.
b. Some polluters can reduce emissions more cheaply than others.
c. The negative externality is so large that the optimal quantity is zero.
d. Knowledge about the cost of pollution abatement is dispersed and hard to obtain
ANSWER:Step 1 of 2
The given options are:
a. A corrective tax would have differential effects on different industries.
b. Some polluters can reduce emissions more cheaply than others.
c. The negative externality is so large that the optimal quantity is zero.
d. Knowledge about the cost of pollution abatement is dispersed and hard to obtain.