Question

Command and Control Regulation is when____.

a. government tells a firm how much they can produce.
b. Firms collude to produce a certain amount of a good.
c. Firms are required to install anti pollution equipment thereby increasing their costs and reducing their output.
d. The government taxes the amount of goods produced by a firm.

Answer 1

The correct answer is C

Step-by-step explanation:

CAC which stands for Command and Control Regulation, it is defined as the direct regulation which the industry or an activity through legislation states that what is permitted and what is illegal.

It requires the firms to install the anti pollution equipment and then increase the costs by reducing the output. It is successful in cleaning and protecting the US environment.