Multiple Choice
If there are significant external costs associated with the production of a product, it can be said that the private cost of production to the firm understates the cost to society associated with this product. In order to move towards efficiency, what should happen to output?
A) It should decrease.
B) It should increase.
C) It should stay the same.
D) It should cease.
Correct Answer:
Verified
Correct Answer:
Verified
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