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Levying environmental taxes and creating cap-and-trade quotas for emissions are both methods governments may use to reduce negative externalities. Which of the following best explains
Levying environmental taxes and creating cap-and-trade quotas for emissions are both methods governments may use to reduce negative externalities. Which of the following best explains the economic rationale behind these policies?The policies ____. a. place a monetary price on social costs so firms can guage their true costs accordingly b. place a monetary price on social costs so firms can guage their true costs accordingly c. decrease the marginal costs of pollution for the firms while increasing revenue for governments d. All of these answers
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