Business, 07.08.2019 05:20 allieballey0727

Now suppose the u. s. government does not know the demand curve for pollution and, therefore, cannot determine the optimal tax to achieve the desired level of pollution. instead, it auctions off tradable pollution permits. each permit entitles its owner to emit one ton of chemicals per day. to achieve the socially optimal quantity of pollution, the government auctions off 140 million pollution permits. given this quantity of permits, the price for each permit in the market for pollution rights will be

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Now suppose the u. s. government does not know the demand curve for pollution and, therefore, cannot...