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Suppose That a Vehicle Is Invented Such That It Emits

Question 89

Multiple Choice

Suppose that a vehicle is invented such that it emits no pollutants into the atmosphere. To achieve an efficient market outcome, the government must:


A) outlaw SUV and other vehicles that pollute the environment.
B) allow other vehicles that emit pollutants into the atmosphere, as long as vehicle owners pay all the costs associated with their pollution.
C) require all auto makers to produce the vehicles that produces zero emissions.
D) be the sole producer of that vehicle.

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