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External Benefits Are Generated by Garden Supplies That Are Used

Question 49

Multiple Choice

External benefits are generated by garden supplies that are used to beautify gardens and yards in neighborhoods. In equilibrium, the market will:


A) produce too many garden supplies.
B) price garden supplies at less than the marginal social cost.
C) price garden supplies at less than the marginal social benefit.
D) price garden supplies above the marginal social cost.

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