A perfectly competitive steel mill that produces large amounts of poll – McqOptions

MCQOPTIONS

1.	A perfectly competitive steel mill that produces large amounts of pollution (a negativeexternality) will, from a social point of view
A.	produce too little steel
B.	produce the socially optimal quantity of steel.
C.	produce too much steel.
D.	produce too much steel only if it installs pollution control equipment.
Answer» D. produce too much steel only if it installs pollution control equipment.

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