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    Principles of Microeconomics
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    Exam 16: Externalities, Public Goods, and Common Resources
  5. Question
    If Perfectly Competitive Firms Have to Account for External Costs
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If Perfectly Competitive Firms Have to Account for External Costs

Question 245

Question 245

Multiple Choice

If perfectly competitive firms have to account for external costs of production, then at the equilibrium level of output


A) P = MC
B) P < MSC
C) MC = MSC
D) Both A and C are correct.

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