Because producers do not bear the external cost of pollution
A) private production exceeds the economically efficient level.
B) the economically efficient level of production is achieved.
C) private production is below the economically efficient level.
D) the market price is too high.
A
You might also like to view...
Horizontal equity refers to a tax system in which individuals with similar incomes pay similar taxes
a. True b. False Indicate whether the statement is true or false
In the economy of Talikastan in 2015, consumption was $600, exports were $300, GDP was $1300, government purchases were $250, and investment was $300 . What were Talikastan's imports in 2015?
a. -$150 b. -$200 c. $200 d. $150
Suppose a U.S. automaker builds and operates a new factory in Italy. Future production from such an investment will
a. increase Italian GDP more than it increases Italian GNP. b. increase Italian GNP more than it increases Italian GDP. c. have no affect on Italian GNP, but will increase Italian GDP. d. have no affect on either Italian GDP or GNP.
Below, The graph on the left shows the short-run marginal cost curve for a typical firm selling in a perfectly competitive industry. The graph on the right shows current industry demand and supply.
What is the marginal revenue for the FIRM from selling the 250th unit of output?
A. $8 B. $4 C. $10 D. $6 E. zero