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    Principles of Microeconomics Study Set 10
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    Exam 10: Externalities
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    If an Aluminum Manufacturer Does Not Bear the Entire Cost
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If an Aluminum Manufacturer Does Not Bear the Entire Cost

Question 230

Question 230

Multiple Choice

If an aluminum manufacturer does not bear the entire cost of the smoke it emits, it will


A) emit a lower level of smoke than is socially efficient.
B) emit a higher level of smoke than is socially efficient.
C) emit an acceptable level of smoke.
D) not emit any smoke in an attempt to avoid paying the entire cost.

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