When a Nuclear-Powered Electrical Plant Is Permitted to Dump Radioactive

question 136

Multiple Choice

When a nuclear-powered electrical plant is permitted to dump radioactive waste at no cost into a recreational waterway lowering the value boaters receive from the waterway, the

• A) firm's cost of producing electricity will be higher than the community's true opportunity cost.
• B) firm will tend to produce too little electricity from the viewpoint of economic efficiency.
• C) community generally receives an external benefit from the production of electricity.
• D) firm's cost of producing electricity will be lower than the community's true opportunity cost.

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