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If a Good That Involves External Costs Is Priced to Take

Question 85

Multiple Choice

If a good that involves external costs is priced to take these costs into account, then its:


A) price would fall and output would go up.
B) price would rise and output would fall.
C) price would not change but output would fall.
D) price would rise but output would stay the same.

Correct Answer:

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