One of the ways that initial pollution rights can be allocated in a cap-and-trade program is by equal distribution among all existing sources of a particular effluent. Which of the following is a reason that equal distribution of initial pollution rights among polluters is flawed? (Choose all that apply.)
a)Existing firms within an industry vary in size.
b)This method harms firms that had reduced their emissions already.
c)This method will result in MACs not being equalized across firms.
d)The supply curve for permits is a vertical line.



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