Which statement best describes the difference between command-and-control regulations and market-based instruments?

Which statement best describes the difference between command-and-control regulations and market-based instruments?

• A. Command-and-control prescribes limits/tech; market-based uses prices or markets
• B. Market-based are always less efficient than command-and-control
• C. Both rely on technology mandates
• D. Command-and-control uses price-based incentives; market-based uses fixed limits

Answer: (A)