Business, 16.04.2020 00:35 alexandraschwartz21

Once tradable pollution permits have been allocated to firms:

a. the Coase theorem is no longer applicable as a solution to reducing pollution.

b. the government controls the price of permits.

c. the value of pollution-saving technology will be lower than the market value of a pollution permit.

d. firms that can reduce pollution only at high cost will be willing to pay the most for the pollution permits.

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Once tradable pollution permits have been allocated to firms:

a. the Coase theorem is no...

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