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A Company Earns $200,000 in Profit

Question 77

Multiple Choice

A company earns $200,000 in profit.The total costs paid by the firm are $800,000.Production of the goods contaminates the river and small lakes,which reduces the profits of salmon fishermen by $90,000.The external cost to society of the company's production is


A) $90,000.
B) $110,000.
C) $200,000.
D) $600,000.

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