A perfectly competitive steel mill that produces large amounts of pollution (a negative externality) will, from a social point of view,
a. produce too little steel.
b. produce the socially optimal quantity of steel.
c. produce too much steel.
d. produce too much steel only if it installs pollution control equipment.
c
Economics
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What will be an ideal response?
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Answer the following statement true (T) or false (F)
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