Generating Electricity Creates Air Pollution

question 265

Multiple Choice

Generating electricity 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.

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Definitions:

Add Fractions

The process of combining two fractions with a common denominator to form a single fraction.

Simplest Form

Refers to the state of an algebraic expression when it has been reduced to the most basic or simplified version without changing its value.

Reciprocal

The inverse of a number or expression; for a nonzero number \(x\), its reciprocal is \(1/x\).

Simplest Form

A term used to describe an expression, fraction, or other mathematical entity that has been reduced to its most basic form, eliminating any common factors or simplifying variables.