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If a Tin of Sardines Creates a Noxious Odor for Non-Sardine-Eaters

Question 75

Multiple Choice

If a tin of sardines creates a noxious odor for non-sardine-eaters equivalent to $1 per tin, it follows that the market produces:


A) too few tins of sardines relative to the social optimum.
B) too many tins of sardines relative to the social optimum.
C) the socially optimal level of sardines.
D) too many or too few tins of sardines, but it is impossible to say which.

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