Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 16 - Public Finance: Expenditures and Taxes - Questions - Page 355: 10

Answer

If company A can reduce pollution by 1 ton at less cost than company B, then company B should buy emission credits from company A. In doing this, society is using fewer resources (spending fewer dollars) to achieve the same level of pollution reduction.

Work Step by Step

Conceptual Question. No Work Needed.
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