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Suppose Frank Likes to Snack on Sugary Candy

Question 54

Multiple Choice

Suppose Frank likes to snack on sugary candy. Frank knows that it's bad for his teeth to eat sugary candy, but he doesn't care. Frank's snacking habits have no impact on anyone other than Frank. In this case, Frank's consumption of sugary candy generates:


A) a negative externality.
B) a positive externality.
C) neither a positive nor a negative externality.
D) both a positive and a negative externality.

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