If Producing a Good or a Service Creates Pollution,then

question 236

Multiple Choice

If producing a good or a service creates pollution,then

• A) an unregulated competitive market produces an efficient output.
• B) the industry's supply curve includes the extra cost of pollution.
• C) at the unregulated, competitive market equilibrium quantity, marginal social cost is greater than the equilibrium price.
• D) at the unregulated, competitive market equilibrium quantity, marginal social benefit and marginal social cost are equal.
• E) at the unregulated, competitive market equilibrium quantity, marginal social benefit is less than the equilibrium price.