Question

How do externalities in the production of electricity result in market failure​? Because of​ externalities, the market for electricity will

A. result in a surplus of electricity.
B. generate too much economic surplus.
C. provide too much electricity.
D. provide insufficient electricity.
E. result in a price for electricity that is inefficiently high.

Answer 1

C. provide too much electricity.

Step-by-step explanation:

This is because the electricity market cannot accurately know how many electricity it's providing, resulting in them providing more electricity to the people or businesses than they should, thus causing a deficit and making the electricity market lose money.