If we compare the effects of a pollution tax with those of a command-and-control policy,production cost will be
A) the same under a command-and-control policy and a pollution tax.
B) higher under a command-and-control policy than they would be under a pollution tax.
C) less under a command-and-control policy than they would be under a pollution tax.
D) none of the above

Question

Quizplus · Accepted Answer

Under a command-and-control policy, the government sets specific regulations and standards that companies must adhere to in order to reduce pollution. This can be expensive for companies to comply with, as they may need to invest in new technology or processes to meet these regulations. On the other hand, a pollution tax provides a financial incentive for companies to reduce their pollution, as they will be taxed based on the amount of pollution they emit. This gives companies more flexibility to find cost-effective ways to reduce their emissions. Therefore, production costs are generally higher under a command-and-control policy than they would be under a pollution tax.

If We Compare the Effects of a Pollution Tax with Those