If the Social Costs of Refining Oil Are Greater Than

question 3

Multiple Choice

If the social costs of refining oil are greater than the private costs of oil refining, then

• A) the external costs of oil refining are greater than the social costs of oil refining.
• B) users of products that use refined oil are paying too much for the products.
• C) there is too much oil refining.
• D) the amount of oil refining needs to increase in order to bring social costs and private costs in line with each other.

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