Solved

If the Firecat Charcoal Factory Is Able to Release Black

Question 5

Multiple Choice

If the Firecat charcoal factory is able to release black smoke into the air, it will then tend to


A) produce more than it would if it had to contain the smoke.
B) produce at a point at which the quantity demanded equals the socially optimal quantity supplied.
C) add the social cost of the smoke to the price of the charcoal.
D) underproduce because the social costs are added to the private costs.

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