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    Exam 10: Externalities- When the Price Is Not Right
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    External Costs Lead Markets to Produce a Smaller Quantity of a Good
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External Costs Lead Markets to Produce a Smaller Quantity of a Good

Question 72

Question 72

True/False

External costs lead markets to produce a smaller quantity of a good than is socially desirable, while external benefits lead markets to produce a larger quantity of a good than is socially desirable.

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