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If the Production of a Good Generates a Negative Externality

Question 91

Multiple Choice

If the production of a good generates a negative externality, then at the market equilibrium quantity, the marginal cost to society of another unit of the good will be:


A) less than the marginal benefit of another unit.
B) greater than the marginal benefit of another unit.
C) equal to the marginal benefit of another unit.
D) negative due to the external cost.

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