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    Exam 20: Reasons for Government Intervention in the Market
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    A Subsidy to Correct for an Externality Should Be Set
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A Subsidy to Correct for an Externality Should Be Set

Question 1

Question 1

Multiple Choice

A subsidy to correct for an externality should be set equal to the


A) MSC.
B) MSB.
C) MEB.
D) MEC.
E) AC.

Correct Answer:

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