A Chemical-Producing Firm Is Located Just Upstream from an Electric

question 6

Multiple Choice

A chemical-producing firm is located just upstream from an electric power plant.Instead of the more expensive procedure of burying its wastes,the chemical-producing firm begins dumping its waste into the stream.This causes increased variable costs for the power plant,which uses water from the stream to cool its turbines.From society's viewpoint,the chemical producer's pollution causes an

• A)Overproduction of chemicals and an underproduction of electric power.
• B)Underproduction of chemicals and an overproduction of electric power.
• C)Optimal production of chemicals and electric power.
• D)Optimal production of electric power and a suboptimal production of chemicals.

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