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  3. Study Set
    Modern Principles of Economics Study Set 2
  4. Exam
    Exam 10: Externalities: When the Price Is Not Right
  5. Question
    Figure: Market with External Cost Reference: Ref 10-2 (Figure
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Figure: Market with External Cost Reference: Ref 10-2 (Figure

Question 31

Question 31

Multiple Choice

Figure: Market with External Cost Figure: Market with External Cost   Reference: Ref 10-2 (Figure: Market with External Cost)  The figure displays a market with external costs. The efficient level of output of ________ units would eliminate the deadweight loss area of ________. A)  Q1; ce B)  Q0; ce C)  Q0; gh D)  Q1; de Reference: Ref 10-2 (Figure: Market with External Cost) The figure displays a market with external costs. The efficient level of output of ________ units would eliminate the deadweight loss area of ________.


A) Q1; ce
B) Q0; ce
C) Q0; gh
D) Q1; de

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