Researchers have accurately estimated the marginal external cost created by water pollution from a paper mill. The pollution from the mill can be measured. Which policy would achieve the optimal level of pollution reduction at the lowest cost to society? A system of marketable permits with the level set at one third of current emissions A command-and-control policy that requires the mill to reduce pollution by one half A requirement to use inputs that create less pollution O A pollution charge equal to the marginal external cost of pollution
Researchers have accurately estimated the marginal external cost created by water pollution from a paper mill. The pollution from the mill can be measured. Which policy would achieve the optimal level of pollution reduction at the lowest cost to society? A system of marketable permits with the level set at one third of current emissions A command-and-control policy that requires the mill to reduce pollution by one half A requirement to use inputs that create less pollution O A pollution charge equal to the marginal external cost of pollution
Chapter1: Making Economics Decisions
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![Researchers have accurately estimated the marginal external cost created by water pollution from a
paper mill. The pollution from the mill can be measured. Which policy would achieve the optimal
level of pollution reduction at the lowest cost to society?
O A system of marketable permits with the level set at one third of current emissions
A command-and-control policy that requires the mill to reduce pollution by one half
O A requirement to use inputs that create less pollution
O A pollution charge equal to the marginal external cost of pollution](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F06ac4cd2-7e81-4c28-bc34-f788b45a542f%2F8e16fb35-f28d-49a2-b713-2b54ea13e3df%2F7n9jbal_processed.png&w=3840&q=75)
Transcribed Image Text:Researchers have accurately estimated the marginal external cost created by water pollution from a
paper mill. The pollution from the mill can be measured. Which policy would achieve the optimal
level of pollution reduction at the lowest cost to society?
O A system of marketable permits with the level set at one third of current emissions
A command-and-control policy that requires the mill to reduce pollution by one half
O A requirement to use inputs that create less pollution
O A pollution charge equal to the marginal external cost of pollution
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