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A Result of a Positive Externality in the Production of a Good

Question 158

Multiple Choice

A result of a positive externality in the production of a good is that


A) the price system will over-allocate resources to the production of that good or service.
B) the price system will under-allocate resources to the production of that good or service.
C) the market supply will be too high.
D) the market demand will be too high.

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