The most efficient pollution control system would ensure that ?
Correct answer: D. the polluters with the lowest cost of reducing pollution reduce their pollution the greatest amount
- A. the regulators decide how much each polluter should reduce its pollution.
- B. no pollution of the environment is tolerated
- C. each polluter reduces its pollution an equal amount
- D. the polluters with the lowest cost of reducing pollution reduce their pollution the greatest amount
Explanation
Efficiency requires pollution reductions to be made by firms that can reduce emissions at the lowest cost, rather than requiring equal reductions from every polluter. This achieves a given environmental target at minimum total cost.
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About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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