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Websystem in which a firm must own a government-issued permit for each unit of pollution addresses these problems because the government determines the number of permits to create. A cap-and-trade system, which allows firms to trade these permits, accomplishes the environmental goal at least cost. Addressing Externalities Through Subsidies WebDec 2, 2013 · P eople often lament the waste, corruption, and downright absurdities of government enterprises, wondering why they can’t be “run like a business.”. Yet economic theory shows that this is no mere accident: Serious institutional differences make government officials much less efficient at managing scarce resources than their private … reachcraft powerlift one man portable lift
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