A preference for either taxes or 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. Marginal revenue of pollution control curve and marginal cost of damage curve
c. Marginal cost of pollution reduction curve and marginal cost of damage curve
d. Marginal benefit of pollution curve and marginal revenue of pollution curve
e. Marginal utility of pollution curve and marginal cost of regulation
Answer: c. Marginal cost of pollution reduction curve and marginal cost of damage curve
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