Multiple Choice
When externalities exist,what do buyers and sellers do and how do their actions affect market equilibrium
A) They neglect the external effects of their actions, but the market equilibrium is still efficient.
B) They do not neglect the external effects of their actions, and the market equilibrium is efficient.
C) They neglect the external effects of their actions, and the market equilibrium is not efficient.
D) They do not neglect the external effects of their actions, and the market equilibrium is not efficient.
Correct Answer:
Verified
Correct Answer:
Verified
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