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When Negative Externalities Are Present in a Market,it Implies That

Question 179

Multiple Choice

When negative externalities are present in a market,it implies that


A) the market price is too low to achieve optimum social surplus.
B) the market price is too high to achieve optimum social surplus.
C) the market price is just right to achieve optimum social surplus.
D) the market price should be lowered further to achieve optimum social surplus.
E) production should be increased to achieve optimum social surplus.

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