Question

question
which of the following is considered a shortcoming of command - and - control regulations?
select the correct answer below:
they require the installation of certain equipment.
they specify how much pollution can be emitted.
they impose penalties if a pollution limit is exceeded.
they provide no incentive for firms to do better than the bare minimum of staying within the pollution limits that the government sets.

Explanation:

Command - and - control regulations set fixed standards (like equipment installation, pollution limits, penalties for exceeding limits). However, they lack incentives for firms to go beyond the minimum requirements. Firms only aim to meet the set limits, not to innovate or reduce pollution further.

Answer:

They provide no incentive for firms to do better than the bare minimum of staying within the pollution limits that the government sets.