When the Times Mirror Company purchased the right to discharge 150 tons of hydrocarbons annually from other polluters,this was an example of

A) following an incentive-based regulation.
B) following a command-and-control regulation.
C) conducting a transaction between polluters typical of those that have been carried out since the early 20th century.
D) an illegal transaction.

Hydrocarbons

Organic compounds consisting entirely of hydrogen and carbon, used as fuels, solvents, and as raw materials for various chemicals.

Incentive-based Regulation

A regulatory approach that aims to encourage desired behaviors through financial incentives, rather than through mandates or prohibitions.

Command-and-control Regulation

A regulatory approach where the government sets specific limits or standards for various aspects of business operations to control or reduce negative externalities.