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    Microeconomics Study Set 8
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    Exam 15: Externalities, Environmental Policy and Public Goods
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    Figure 152 Figure 15
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Figure 152 Figure 15

Question 33

Question 33

Multiple Choice

Figure 15.2 Figure 15.2   Figure 15.2 shows a market with a negative externality. -Refer to Figure 15.2.The size of marginal external costs can be determined by A) S<sub>2</sub> + S<sub>1</sub><sub> </sub>at each output level. B) S<sub>2</sub><sub> </sub>- S<sub>1</sub><sub> </sub>at each output level. C) the supply curve S<sub>2</sub>. D) the supply curve S<sub>1</sub>. Figure 15.2 shows a market with a negative externality.
-Refer to Figure 15.2.The size of marginal external costs can be determined by


A) S2 + S1 at each output level.
B) S2 - S1 at each output level.
C) the supply curve S2.
D) the supply curve S1.

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