A copper mining operation discharges waste products into a river and causes higher costs and discomfort to downstream users of the water for which they are not compensated.In this case:
A) too little of society's resources are being used to produce copper.
B) too much of society's resources is being used to produce copper.
C) the optimal amount of society's resources is being used to produce copper.
D) there is an external benefit to society from copper production.

Question

Quizplus · Accepted Answer

The copper mining operation is causing harm to downstream users without compensating them, indicating that the costs of production are not fully internalized. This means too much of society's resources are being used to produce copper, as the true cost of the operation is not reflected in the market price of copper.

A Copper Mining Operation Discharges Waste Products into a River