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    Exam 8: Public Choices and Public Goods
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    Consider a Market in Which There Is an External Benefit
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Consider a Market in Which There Is an External Benefit

Question 107

Question 107

Multiple Choice

Consider a market in which there is an external benefit. The inefficient market equilibrium is such that


A) marginal social cost is greater than marginal social benefit.
B) price is too high.
C) too much output is produced.
D) too little output is produced.

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