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.
D
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An increase in domestic demand for a product protected by a quota results in an increase in producer surplus for domestic firms, while for a tariff it would result in more imports
Indicate whether the statement is true or false
A change in consumers' expectations about the future will shift both the aggregate expenditure curve and the aggregate demand curve
a. True b. False Indicate whether the statement is true or false
A market that is shared equally by 100 firms would have a Herfindahl index of :
a. 1. b. 1,000. c. 500. d. 100. e. 50.
Why are time series data unlikely to give an accurate estimate of demand?