A private company is among only a small number of electricity suppliers in an economy. The government penalises it for pollution caused by its coal-fired power stations, which harms the health of people living close by. What does this situation involve?
- Aa government policy of nationalising an electricity supplier
- Ba market structure for electricity that is perfect competition
- Ca monopoly electricity supplier that ignores government controls
- Dexternal costs that are the result of electricity production