Generating Electricity Using Coal Creates Air Pollution

question 186

Multiple Choice

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

• A) marginal private cost equals marginal social benefit.
• B) marginal social cost equals marginal social benefit.
• C) marginal social cost equals marginal private cost.
• D) marginal social benefit is greater than marginal social cost.