Multiple Choice
When externalities exist, buyers and sellers
A) neglect the external effects of their actions, but the market equilibrium is still efficient.
B) do not neglect the external effects of their actions, and the market equilibrium is efficient.
C) neglect the external effects of their actions, and the market equilibrium is not efficient.
D) do not neglect the external effects of their actions, and the market equilibrium is not efficient.
Correct Answer:
Verified
Correct Answer:
Verified
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