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    Exam 17: Externalities
  5. Question
    Suppose a Firm Produces Pollution When It Generates Electricity
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Suppose a Firm Produces Pollution When It Generates Electricity

Question 412

Question 412

Multiple Choice

Suppose a firm produces pollution when it generates electricity. The cost of the pollution is called the


A) marginal cost.
B) marginal private cost.
C) marginal external cost.
D) marginal social cost.

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