If a Production Process Creates Pollution,a Competitive Market Produces Excessive

question 92

Multiple Choice

If a production process creates pollution,a competitive market produces excessive pollution because

• A) the firms do not include the social cost of the pollution in their profit-maximizing decisions.
• B) the firms place too high a price on society's cost of inflation.
• C) people are not injured by the pollution.
• D) zero pollution is optimal.

---

Definitions:

Complications

Secondary conditions, diseases, or other adverse events that develop as a result of an existing illness or medical treatment.

Serum Concentrations

The levels of specific substances, like medications or hormones, within the blood serum, important for diagnostic and treatment purposes.

Congestive Heart Failure

A chronic progressive condition that affects the pumping power of the heart muscles, leading to a buildup of fluid around the heart and throughout the body.

Maintenance Phase

The stage in various processes, such as therapy or project management, where the focus is on sustaining achieved results and preventing regression.