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Once tradable pollution permits have been allocated to firms,

a. The government controls the price of permits.

b. The marginal benefit of additional reductions in pollution will always increase.

c. The value of pollution-saving technology will be lower than the market value of pollution permits

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

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Mahe Alam
Mahe AlamLv10
25 Jan 2021
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