In general,pollution is economically inefficient because _____.
A)people do not like breathing bad air
B)it is a byproduct of a market exchange
C)producers are only pursuing their own self-interests
D)producers do not have to internalize the opportunity cost of clean air

Question

Quizplus · Accepted Answer

Pollution is economically inefficient because producers do not have to internalize the opportunity cost of clean air. This means that the cost of pollution is not fully reflected in the price of the good or service being produced, leading to a situation where too much pollution is being produced from a societal perspective. This is known as a market failure, where the market is not achieving the most efficient outcome for society as a whole.

In General,pollution Is Economically Inefficient Because _____