Which of the following is a problem that occurs with command-and-control policies?
A)lead to increased pollution
B)decrease the firm's incentives to develop more efficient abatement technologies
C)An abatement technology that is efficient for one firm may be inefficient for others.
D)B and C are correct.

Question

Quizplus · Accepted Answer

Command-and-control policies can lead to increased pollution because they do not necessarily provide incentives for firms to reduce pollution beyond the minimum required by regulation. Additionally, they can decrease a firm's incentives to develop more efficient abatement technologies because they do not reward innovation or penalize inefficiency. Furthermore, an abatement technology that is efficient for one firm may not be efficient for others due to differences in production processes or other factors, which can make it difficult to implement uniform regulations.

Which of the Following Is a Problem That Occurs with Command-And-Control