If a Production Process Generates Pollution,then a Competitive Market Will

question 86

Multiple Choice

If a production process generates pollution,then a competitive market will produce more of the good than is socially optimal because

• A) firms take all costs into consideration.
• B) firms incur all costs of production but ignore some of them.
• C) firms ignore the costs of production that they do not incur.
• D) firms set price equal to social marginal cost.

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Definitions:

Global Environmental Security

Efforts and policies aimed at protecting the global environment to ensure the health and safety of the planet and its inhabitants.

Food Security

The state in which all people at all times have physical, social, and economic access to sufficient, safe, and nutritious food that meets their dietary needs and food preferences for an active and healthy life.

Economic Security

The condition of having stable income or resources to support a standard of living now and in the foreseeable future.

Environmental Protection Agencies

Governmental organizations tasked with the regulation and enforcement of laws governing environmental protection and conservation.