Question

5. A preference for either pollution taxes or marketable permits to regulate pollution is dependent on the relative shape of what two curves?

a. Total cost of damage curve and total cost of pollution reduction curve

b. The marginal cost of pollution reduction curve and the marginal cost of damage curve

c. The marginal revenue of the pollution control curve and the marginal cost of damage curve

d. The marginal benefit of pollution reduction curve and the marginal cost of pollution abatement curve