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If Producing a Good or a Service Creates Pollution, Then

Question 9

Multiple Choice

If producing a good or a service creates pollution, then


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

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