Suppose that a company runs coal refining business in North eastern part of China. Its factory emits poisonous gases into the air, leading to a decline in air quality in the surrounding area. If the firm does not have to pay for the emission of pollution, for its output, the market equilibrium price and the market equilibrium quantity will respectively be

Question

Answer

efficient; inefficiently low.

Answer

inefficiently low; inefficiently high.

Answer

inefficiently high; inefficiently low.

Answer

inefficiently high; inefficiently high.

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Suppose that a company runs coal refining business in North eastern part of Chin...

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