Multiple Choice
When does an externality exist
A) when the government imposes a tariff and forces the market to adjust to a new equilibrium
B) when markets are not able to reach equilibrium
C) when a firm sells its product in a foreign market at the world price
D) when a person engages in an activity that influences the well-being of a bystander and yet neither one pays nor receives payment for that effect
Correct Answer:
Verified
Correct Answer:
Verified
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