Quantity restrictions are equivalent to using corrective tax

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Reference no: EM13849785

Which of the following is NEVER true?

A. Quantity restrictions are equivalent to using a corrective tax.

B. Quantity restrictions with tradable permits are equivalent to using a corrective tax.

C. Mandating equal pollution reductions from all firms is equivalent to using a corrective tax.

D. Both a and c are correct.

E. None of the answers is correct.

Reference no: EM13849785

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