Question: According to the Harvard Business Review, HP, an oil and gas company, created an internal market in which the head of each unit could buy and sell emissions permits, rather than setting target emissions levels with a top-down approach. Each permit allowed a unit to produce a certain amount of emissions. If the unit could reduce emissions, it could sell its permit to another unit that needed one. As a result, BP reduced its emissions nine years in advance of its target goal. Which statement is FALSE?
O The head of each unit at BP knew more about their department's ability to reduce emissions than the BP executives.
O The permit system at BP allocated scarce resources to their most bene?cial use.
O The head of each unit at BP determined their department's marginal bene?t of a permit.
O The price of an emissions permit was irrelevant to each unit's individual emissions reduction.