Multiple Choice
Relating to the Economics in Practice on page 329: By not factoring in the external costs on society resulting from an environmental disaster caused by a specific firm, the firm will most likely ________ its product, and at equilibrium, the marginal social costs of production will be ________ the price.
A) overproduce; less than
B) overproduce; greater than
C) underproduce; less than
D) underproduce; greater than
Correct Answer:
Verified
Correct Answer:
Verified
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