If the local slaughterhouse gives off an unpleasant stench, then the equilibrium quantity of meat will be ________ the quantity that maximizes total economic surplus.
A)more equitable
B)equal to
C)lower than
D)higher than

Question

Quizplus · Accepted Answer

If the production of meat imposes costs on people other than those who buy and sell the meat, then the equilibrium quantity will be higher than the socially optimal quantity.

If the Local Slaughterhouse Gives Off an Unpleasant Stench, Then