Question: Time left 2 : 0 9 : 4 5 If electricity producers create a negative externality equal to $ 6 7 . 5 0 per
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If electricity producers create a negative externality equal to $ per unit, then we can correctly conclude that
Select one:
a the equilibrium quantity is less than the socially optimal quantity.
b the equilibrium quantity is equal to socially optimal quantity.
c the equilibrium quantity is greater than the socially optimal quantity.
d imposing a $ Pigouvian tax on electricity producers would decrease the total surplus.
ec and d
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