Quantity restrictions are equivalent to using corrective tax

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Which of the following is NEVER true?                   

A. Quantity restrictions are equivalent to using a corrective tax.                

B. Quantity restrictions with tradable permits are equivalent to using a corrective tax.                  

C. Mandating equal pollution reductions from all firms is equivalent to using a corrective tax.                     

D. Both a and c are correct.                         

E. None of the answers is correct.

Reference no: EM13849785

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Quantity restrictions are equivalent to using corrective tax : Quantity restrictions are equivalent to using a corrective tax. Quantity restrictions with tradable permits are equivalent to using a corrective tax. Mandating equal pollution reductions from all firms is equivalent to using a corrective tax.
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