Answered

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Pollution control equipment may exist. If so firms can reduce the pollution they create by using this equipment. How can government induce firms to use the efficient amount of pollution control equipment?
a. By imposing a tax on the pollution that a firm creates
b. By imposing a tax on the products whose production creates pollution
c. By making it illegal to pollute
d. By allowing firms to treat their spending on pollution control equipment as a production cost

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