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The Pig Farm Industry Is Perfectly Competitive and Causes Pollution

Question 3

Multiple Choice

The pig farm industry is perfectly competitive and causes pollution to the surrounding air and water. Which of the following is true ?


A) Since the industry is perfectly competitive, price and quantity are at the socially efficient levels.
B) The competitive price is higher and quantity lower than the socially efficient point.
C) The competitive price is higher and quantity higher than the socially efficient point.
D) The competitive price is lower and quantity higher than the socially efficient point.

Correct Answer:

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