If firms in a perfectly competitive industry pollute the air and there is no government regulation or intervention in the market, then compared to the socially optimallevels,OA. the market price will be too high and industry output too low.OB. the market price will be too low and industry output too high.C. the market price and industry output will be at the socially optimal levels.D. we do not have enough information to determine which of these is true.

A market characterized by perfect competition features many firms that are price takers with no…

If firms in a perfectly competitive industry pollute the air and there is no government regulation or intervention in the market, then compared to the socially optimal levels, OA. the market price will be too high and industry output too low. B. the market price will be too low and industry output too high. OC. the market price and industry output will be at the socially optimal levels. D. we do not have enough information to determine which of these is true.

If firms in a perfectly competitive industry pollute the air and there is no government regulation or intervention in the market, then compared to the socially optimal levels, OA. the market price will be too high and industry output too low. B. the market price will be too low and industry output too high. OC. the market price and industry output will be at the socially optimal levels. D. we do not have enough information to determine which of these is true.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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