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Asked Nov 5, 2019
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3. If given the option to reduce pollution using regulation (equal reduction by each firm) or
tradeable permits (between low and high-cost firms), which would an economist choose?
Explain.
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3. If given the option to reduce pollution using regulation (equal reduction by each firm) or tradeable permits (between low and high-cost firms), which would an economist choose? Explain.

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Expert Answer

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The economist would choose tradable permit than reducing pollution using regulation. The tradable permit is a permission to produce certain level of pollution ...

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