Multiple Choice
The basic reason that a competitive unregulated market produces an inefficient amount of a good with an external cost is because
A) external costs are not a political issue.
B) the general public does not care about external costs.
C) producers cannot measure marginal social cost.
D) the external cost is paid by consumers rather than producers.
E) producers do not pay the external cost.
Correct Answer:

Verified
Correct Answer:
Verified
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