Multiple Choice
Which of the following statements is most correct about a market that is characterised by a negative production externality?
A) the equilibrium quantity of output is equal to the socially optimal quantity
B) the equilibrium quantity of output is greater than the socially optimal quantity
C) government intervention is only required for negative externalities
D) the equilibrium quantity of output is less than the socially optimal quantity
Correct Answer:
Verified
Correct Answer:
Verified
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