Direct Regulation Is Inefficient Because

Direct regulation is inefficient because:

A) affected firms ignore regulations, for example, by dumping toxic waste illegally.
B) it does not take into account that the costs of reducing consumption are the same for all individuals.
C) it does not take into account the fact that the costs of reducing consumption may differ among individuals.
D) it does not take negative externalities into account.

Correct Answer:

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