Microeconomics: Principles, Applications, and Tools (8th Edition)

by O'Sullivan, Arthur; Sheffrin, Steven; Perez, Stephen

Published by Prentice Hall

ISBN 10: 0-13294-886-9

ISBN 13: 978-0-13294-886-9

Chapter 16 - External Costs and Environmental Policy - Exercises - 16.4 Marketable Pollution Permits - Page 374: 4.2

Answer

decrease

Work Step by Step

There will be a $\textbf{decrease}$ in the total cost of abatement when switching from regular to marketable pollution permits.

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