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 is 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 negative externalities by discharging waste products into the river. The downstream users of the water are experiencing higher costs and discomfort for which they are not compensated. This means that the true cost of producing copper is higher than what is reflected in the market price, indicating that too much of society's resources are being used to produce copper.

A Copper Mining Operation Discharges Waste Products into a River