Question




Choose the correct word from the drop down menu to complete the sentence below. If firms do not clean up their pollution, the
0 0
Add a comment Improve this question Transcribed image text
Answer #1

If the firms do not clean up the pollution the prices will be LOWER than if there was no pollution and quantity will be HIGHER than if there was no pollution.

Reason- Pollution causes negative externality. When we account for the marginal cost of pollution, the supply curve shifts leftward due to the added cost. At social optimal level of no pollution the prices are higher and quantity is lower than market efficient level with pollution.

Add a comment
Know the answer?
Add Answer to:
Choose the correct word from the drop down menu to complete the sentence below. If firms...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT