A Perfectly Competitive Chemical Plant Dumps Large Amounts of Waste

Multiple Choice

A perfectly competitive chemical plant dumps large amounts of waste into a nearby river. From society's perspective, the chemical plant:

A) Is producing too much.
B) Is not producing enough.
C) Is producing just the right amount.
D) Will produce more steel after it installs pollution control equipment.
E) Will produce less if local government imposes a pollution tax.