Thursday, June 30, 2011

Negative Environmental Externality

Nancy asks…Dioxin emission that results from the production of paper is a good example of a negative externality because?a. self-interested paper firms are generally unaware of environmental regulations
b. there are fines for producing too much dioxin
c. self-interested paper producers will not consider the full cost of the dioxin pollution they create
d. toxic emissions are the best example of an externalitySmith answers:I choose C.

The paper producers will not worry too much about the full

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