Multiple Choice
Suppose that the purchase of a good involves a marginal external benefit of $2 per unit. In this case, the purchase of the good involves a _____ externality, and it will be purchased in an amount that is _____ than socially optimal.
A) positive; less
B) positive; more
C) negative; less
D) negative; more
Correct Answer:
Verified
Correct Answer:
Verified
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