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    Principles of Microeconomics
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    Exam 14: Externalities, Market Failure, and Public Choice
  5. Question
    In Cases Where Negative Externalities Are Present, the Equilibrium Price
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In Cases Where Negative Externalities Are Present, the Equilibrium Price

Question 166

Question 166

True/False

In cases where negative externalities are present, the equilibrium price in the market is higher than it should be to achieve the optimal allocation of resources.

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