An unregulated paper firm that pours waste into a waterway
A)is producing at a quantity where marginal social cost is greater than marginal social benefit..
B)is producing at a quantity where marginal social benefit is greater than marginal social cost.
C)is producing the social optimal quantity.
D)has taken social cost into account.

Question

Quizplus · Accepted Answer

An unregulated paper firm that pours waste into a waterway is likely not taking into account the negative externalities it is creating for society. This means that the marginal social cost of their production is greater than the marginal social benefit, indicating inefficiency in their production.

An Unregulated Paper Firm That Pours Waste into a Waterway