Multiple Choice
Consider an industry that produces an output Q with marginal private cost (MC) and marginal social cost (MSC) as given in the table: 
Which of the following is TRUE?
A) The production of each additional unit results in a larger marginal external cost.
B) The production of each additional unit results in the same marginal external cost.
C) The production of each additional unit results in a lower marginal external cost.
D) There are no marginal external costs associated with the production of this good.
Correct Answer:
Verified
Correct Answer:
Verified
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