Why might producers prefer the tradable-permit option


Problem

Suppose the government is considering two policies to limit factory air pollution: taxing producers or providing each producer with an allotment of permits they may trade with other producers. If both policies lead to the same amount of pollution reduction, why might producers prefer the tradable-permit option?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Why might producers prefer the tradable-permit option
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