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

Question 92

Multiple Choice

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


A) the firms do not include the social cost of the pollution in their profit-maximizing decisions.
B) the firms place too high a price on society's cost of inflation.
C) people are not injured by the pollution.
D) zero pollution is optimal.

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