Multiple Choice
Which of the following statements is correct under a market with externalities?
A) Social surplus is maximized as long as consumer surplus is maximized.
B) Social surplus is maximized as long as producer surplus is maximized.
C) Social surplus is maximized as long as both consumer surplus and producer surplus are maximized.
D) None of these statements is correct.
Correct Answer:
Verified
Correct Answer:
Verified
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