Question

UU Ilea tlme, be sure to use resources like your te needed. Question 7 Producers can be encouraged to internalize external costs by O Imposing emission charges but not pollution fines. O Altering market incentives but not through regulatory intervention. O Reducing user fees. Imposing pollution fines or higher uger fees.

Answer 1

Ans 10. In this case option, A is true.
Producers can be encouraged to internalise external costs by imposing emission charges but not pollution fines because admission charges are genuine and it can be bear by the producers but the pollution fine can create a situation where the producer is not able to handle the external charges.
Option B means altering market incentives but not through regulatory intervention it means that market altering incentives are not effective in the control of external cost.
Option C. Reducing user fees is not an effective term to manage the external cost.
Option D. Imposing pollution fines for hire user fees creates a panic situation in the mind of producers because producers are not in a condition to pay the fines they treated as a negative way to handle the conditions.