Question

It was discovered that waste from a local power plant goes into a nearby river. Describe the cost of the situation, if applicable, and describe if any actions should be taken to address it.

A. This represents a negative externality since the private cost are greater than the social cost. The government could impose fines or force the power plant to buy permits to get it to cut back on production.

B. It is not necessary to do anything as there are no external costs.

C. This represents a positive externality since the private costs are greater than the social costs. The government could give the power plant tax breaks to continue working as it has been.

D. This represents a negative externality since the social costs are greater than the private costs. The government could impose fines or force the power plant to buy permits to get it to cut back on production.

Answer 1

Answer: D.) This represents a negative externality since the social costs are greater than the private costs. The government could impose fines or force the power plant to buy permits to get it to cut back on production.

Hope this helps :)

Answer 2

D i think

Explanation:Hope this helps