Multiple Choice
If the production of a good involves negative externalities,________.
A) the quantity of the good supplied in the market is lower than the efficient level
B) the optimal price of the good is higher than the market price of the good
C) total welfare can be increased by increasing the production of the good
D) the average cost of production can be reduced by increasing output above the optimal level
Correct Answer:
Verified
Correct Answer:
Verified
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