Suppose that the government decides to issue tradable permits for a certain form of pollution. a. Does

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Suppose that the government decides to issue tradable permits for a certain form of pollution.

a. Does it matter for economic efficiency whether the government distributes or auctions the permits?

Why or why not?

b. If the government chooses to distribute the permits, does the allocation of permits among firms matter for efficiency? Explain.

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Principles Of Microeconomics

ISBN: 9781305081673

7th Edition

Authors: N Gregory Mankiw

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Question Posted: Nov 02, 2024 05:00 AM

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Suppose that the government decides to issue tradable permits for a certain form of pollution. a. Does

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Principles Of Microeconomics

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