Business, 18.03.2020 20:27 ShayMoore

In a small town, a steel mill produces air pollution. if the government does not intervene, the equilibrium price of steel will be , and the equilibrium quantity of steel will be .

a. less than the socially optimal price, greater than the socially optimal quantity

b. equal to the socially optimal price, equal to the socially optimal quantity

c. greater than the socially optimal price, less than the socially optimal quantity

d. greater than the socially optimal price, greater than the socially optimal quantity

e. less than the socially optimal price, less than the socially optimal quantity the government could best correct this externality by ▼ subsidizing the production of steel prohibiting the production of steel taxing the production of steel .

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In a small town, a steel mill produces air pollution. if the government does not intervene, the equi...