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Suppose a petrochemical factory dumps pollution into a lake which leads to increased costs for local fishermen whose income rely on fishing this lake. The
Suppose a petrochemical factory dumps pollution into a lake which leads to increased costs for local fishermen whose income rely on fishing this lake. The fishermen are not compensated for these added costs. An economist would say: A the quantity of petrochemical production is too low, increasing production would raise total surplus. B. the quantity of petrochemical production is too high, lowering production would raise total surplus. C. the quantity of petrochemical production is at the level where total surplus is maximized. D. society receives a large external benefit from petrochemical production
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