When the government determines the permissible level of pollution and issues permits to each polluting firm,this is a form of

A) incentive-based regulation.
B) command-and-control regulation.
C) tax on pollution.
D) government barrier to the workings of demand and supply.

Incentive-based Regulation

A regulatory approach that uses rewards or penalties to motivate entities to perform in ways that align with policy goals or regulatory standards.

Command-and-control Regulation

Regulatory approach where the government sets specific standards or limitations on the activities of businesses, often related to environmental or safety measures.

Pollution Permits

Allowances provided by government regulations that permit companies to emit a certain level of pollutants.