Suppose 2 million tons of steel are produced at Burns Harbor in Indiana, annually. Suppose there are 200,000 people adversely affected by the air pollution the plant creates. The average WTAC for that air pollution is $500 annually. The inputs used to produce that steel cost $10 million annually. What is the annual private cost of producing that steel?
Question 5 options:
to answer we need to know how much of that $10 million is paid to workers at the plant
A) $500 X 200,000
B) $10 million
C) $500 x 200,000 + $10 million