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.

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Definitions:

Personality Disorder

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