The main disadvantage of an emissions tax is that
a. The total pollution reduction from an emissions tax can not be known for sure
b. Firms lack the flexibility to pursue different technologies
c. Firms do not have an incentive to reduce pollution
d. Firms can not be behave in an economically-efficient manner
e. Differences among firms are not incorporated into the policy
Answer: a. The total pollution reduction from an emissions tax can not be known for sure
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