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    Modern Principles of Economics Study Set 2
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    Exam 10: Externalities: When the Price Is Not Right
  5. Question
    Which of the Following Is TRUE
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Which of the Following Is TRUE

Question 6

Question 6

Multiple Choice

Which of the following is TRUE?


A) private cost + average cost = social cost
B) social cost = private cost + external cost
C) external cost = private cost
D) private cost + social cost = external cost

Correct Answer:

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