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The Following Figure Shows the Market Supply and Demand of a Good

Question 149

Multiple Choice

The following figure shows the market supply and demand of a good whose production entails a $2 negative externality per unit.
The following figure shows the market supply and demand of a good whose production entails a $2 negative externality per unit.    -Refer to the figure above.The socially optimal price for this good should be ________. A)  $6 B)  $4 C)  $8 D)  $7
-Refer to the figure above.The socially optimal price for this good should be ________.


A) $6
B) $4
C) $8
D) $7

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