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    If a Production Process Creates Pollution,a Competitive Market Produces Excessive
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If a Production Process Creates Pollution,a Competitive Market Produces Excessive

Question 1

Question 1

Multiple Choice

If a production process creates pollution,a competitive market produces excessive pollution because


A) private marginal cost of pollution exceeds its social marginal cost.
B) social marginal cost of pollution exceeds its private marginal cost.
C) the marginal benefit of pollution to the firm is zero.
D) zero pollution is optimal.

Correct Answer:

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