Generating Electricity Using Coal Creates Air Pollution

question 188

Multiple Choice

Generating electricity using coal creates air pollution. This industry, if left unregulated, will produce at an inefficient market equilibrium because

• A) there is a deadweight loss.
• B) supply is not equal to demand.
• C) too little output is produced.
• D) the marginal social benefit is greater than the marginal social cost.

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Definitions:

Market Price

The current price at which a good or service can be bought or sold in a competitive marketplace.

Perfectly Competitive

Perfectly Competitive refers to a theoretical market structure characterized by a complete lack of economic friction, infinite buyers and sellers, and a perfectly homogeneous product.

Standardized

Establishing uniform standards or norms for a process, product, or system to ensure consistency and comparability across different instances.

Advertising

The profession or act of creating promotional content for commercial goods or services.