Suppose the government attempts to restrict pollution by mandating a maximum amount that each firm can pollute.

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Suppose the government attempts to restrict pollution by mandating a maximum amount that each firm can pollute. In general, this will result in a higher cost for pollution control than is necessary. Explain why.

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Microeconomics and Behavior

ISBN: 978-0078021695

9th edition

Authors: Robert Frank

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Question Posted: Dec 12, 2014 10:24 AM

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Suppose the government attempts to restrict pollution by mandating a maximum amount that each firm can pollute.

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Optimal pollution reduction requires that the marginal cost of reduction b...View the full answer

Microeconomics and Behavior

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