EPA issued 30 tons of permits to two different utilities. If the utilities had been truthful about what it cost them to mitigate a ton of pollution and EPA had been able to make the marginal benefits and marginal cost equal (balanced)
A) what would the optimum level of abatement been?
B) Which of the three regulatory schemes listed below produced the largest benefit for the lowest cost?
1- a uniform command-and- control framework.
2- a cap-and-trade framework.
3- Emission Tax framework.