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    Exam 5: Externalities, Environmental Policy, and Public Goods
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    Figure 5-2 Figure 5-2 Shows a Market with a Negative
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Figure 5-2 Figure 5-2 Shows a Market with a Negative

Question 155

Question 155

Multiple Choice

Figure 5-2 Figure 5-2   Figure 5-2 shows a market with a negative externality. -Refer to Figure 5-2. The efficient output level is A)  Q<sub>d</sub>. B)  Q<sub>b</sub>. C)  Q<sub>a</sub>. D)  Q<sub>b</sub> - Q<sub>d</sub>. Figure 5-2 shows a market with a negative externality.
-Refer to Figure 5-2. The efficient output level is


A) Qd.
B) Qb.
C) Qa.
D) Qb - Qd.

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