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Firm XYZ Produces Paper Products, Which Cost the Company $100,000

Question 2

Multiple Choice

Firm XYZ produces paper products, which cost the company $100,000. However, the production of the paper results in air pollution. The cost of this negative externality is $6,000. What is the marginal private cost (MPC) ?


A) $106,000
B) $6,000
C) $94,000
D) $100,000

Correct Answer:

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