Certain schools of economic thought suggest that a would reduce pollution in a , when compared to command-and-control regulation. a. marketable permit; less cost-effective way
b. pollution tax; flexible, more cost-effective way
c. marketable permit; less flexible manner
d. pollution tax; less cost effective, but flexible way

You are the manager of a large crude-oil refinery. as part of the refining process, a certain heat exchanger (operated at high temperatures and with abrasive material flowing through it) must be replaced every year. the replacement and downtime cost in the first year is $165 comma 000. this cost is expected to increase due to inflation at a rate of 7% per year for six years (i.e. until the eoy 7), at which time this particular heat exchanger will no longer be needed. if the company's cost of capital is 15% per year, how much could you afford to spend for a higher quality heat exchanger so that these annual replacement and downtime costs could be eliminated?