When a Nuclear-Powered Electrical Plant Is Permitted to Dump Radioactive

Multiple Choice

When a nuclear-powered electrical plant is permitted to dump radioactive waste at no cost into a recreational waterway lowering the value boaters receive from the waterway, the

A) firm's cost of producing electricity will be higher than the community's true opportunity cost.
B) firm will tend to produce too little electricity from the viewpoint of economic efficiency.
C) community generally receives an external benefit from the production of electricity.
D) firm's cost of producing electricity will be lower than the community's true opportunity cost.