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The Net Increase to Total Surplus When a Negative Externality

Question 51

Multiple Choice

The net increase to total surplus when a negative externality is corrected or eliminated is due to:


A) the transfer of surplus from those affected by the externality to the consumer.
B) the reduced number of transactions in the market.
C) the transfer of surplus from consumer or producer to those affected by the externality.
D) None of these statements is true.

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