Command-and-control regulation may be better thana corrective tax ifa. a corrective tax would have differential effects ondifferent industries.b. some polluters can reduce emissions morecheaply than others.c. the negative externality is so large that theoptimal quantity is zero.d. knowledge about the cost of pollution abatementis dispersed and hard to obtain.

Command-and-control regulation may be better thana corrective tax ifa. a corrective tax would have differential effects ondifferent industries.b. some polluters can reduce emissions morecheaply than others.c. the negative externality is so large that theoptimal quantity is zero.d. knowledge about the cost of pollution abatementis dispersed and hard to obtain.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter10: Externalities

Section: Chapter Questions

Problem 5PA

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