Multiple Choice
Pollution occurs when lumber is produced. If the lumber market is unregulated, there would be
A) overproduction of lumber compared to the efficient amount.
B) underproduction of lumber compared to the efficient amount.
C) sometimes overproduction and sometimes underproduction of lumber compared to the efficient amount.
D) an external benefit from producing lumber.
E) no deadweight loss from production.
Correct Answer:

Verified
Correct Answer:
Verified
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