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Use Figure: Negative Externality and Deadweight Loss I

Question 3

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Use Figure: Negative Externality and Deadweight Loss I. The figure shows the marginal benefit, marginal private cost, and marginal social cost that are associated with producing a good. At the free-market equilibrium, the deadweight loss resulting from the externality is:

Figure: Negative Externality and Deadweight Loss I
Use Figure: Negative Externality and Deadweight Loss I. The figure shows the marginal benefit, marginal private cost, and marginal social cost that are associated with producing a good. At the free-market equilibrium, the deadweight loss resulting from the externality is: ​ Figure: Negative Externality and Deadweight Loss I   A)  $30. B)  $40. C)  $50. D)  $60.


A) $30.
B) $40.
C) $50.
D) $60.

Correct Answer:

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