问题 单项选择题

Because copper producers are allowed to release harmful chemicals into the air, the industry supply curve is not the marginal social cost curve. Given this situation and a copper market that is otherwise competitive, copper producers will()

A. produce less than the efficient amount of copper, an example of the "free rider" problem.

B. produce less than the efficient amount of copper, resulting in a dead weight loss from underproduction.

C. produce more than the efficient amount of copper, resulting in a deadweight loss from overproduction.

答案

参考答案:C

解析:

Since some of the societal costs of copper production are not considered by the copper producers, the marginal social cost curve lies above the industry supply curve and equilibrium copper production is greater than the efficient level of output. This results in a deadweight loss from overproduction. The "free rider" problem arises when consumers can enjoy the benefit of public goods without paying anything towards their production.

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