Because producers do not bear the external cost of pollution
A)the economically efficient level of production is achieved.
B)private production is below the economically efficient level.
C)private production exceeds the economically efficient level.
D)the market price is too high.

Question

Quizplus · Accepted Answer

When producers do not bear the external cost of pollution, they produce more than the economically efficient level because they do not account for the negative externalities, leading to overproduction.

Because Producers Do Not Bear the External Cost of Pollution