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The Production of a Good Generates a Foul-Smelling Gas Which

Question 34

Multiple Choice

The production of a good generates a foul-smelling gas which is released into air by factories producing the good.
-Refer to the scenario above. This implies that the production of the good gives rise to ________.


A) a positive externality
B) a negative externality
C) economies of scale
D) diseconomies of scale

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