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