City ponders ban on plastic bags

Most plastic shopping bags end up in the landfill or as litter. Tacoma city officials are considering banning them or allow them for a fee of 5 or 10 cents. Explain why a Tacoma ban on plastic bags would be inefficient. A complete ban on plastic bags might be inefficient __.

A. because a ban increases marginal external cost

B. if when the quantity produced is zero, marginal social cost is less than marginal social benefit

C. if when the quantity produced is zero, marginal social cost is maximized

D. if the demand for plastic bags increases

E. because the government will collect zero revenue on a bag tax