Kizspy | Question: 14
(Choose 1 answer)
FUSTER, LOW LOM
Which of the following statements is correct?
A. Since air pollution creates a negative externality, social welfare will be enhanced when some, but not all air
pollution is eliminated.
B. Since air pollution creates a negative externality, social welfare is optimal when all air pollution is eliminated.
C. Since air pollution creates a negative externality, governments should encourage private firms to consider
only private costs.
D. Since air pollution creates a negative externality, the free market result maximizes social welfare.
