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    Exam 4: Efficiency in Resource Allocation: How Much Do We Have How Much Do We Want
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    Use the Following Diagram to Answer the Following Questions
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Use the Following Diagram to Answer the Following Questions

Question 40

Question 40

Multiple Choice

Use the following diagram to answer the following questions.
Use the following diagram to answer the following questions.    -Refer to Diagram 4-2. In the above diagram, counting the external benefits increases total costs by area: A)  Q₁BCQ₂ B)  Q₁ACQ₂ C)  ABC D)  P₁AQ₁
-Refer to Diagram 4-2. In the above diagram, counting the external benefits increases total costs by area:


A) Q₁BCQ₂
B) Q₁ACQ₂
C) ABC
D) P₁AQ₁

Correct Answer:

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