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For a Production Process That Involves a Positive Externality,it Is

Question 2

Multiple Choice

For a production process that involves a positive externality,it is true that


A) a per unit tax could be imposed on the producer to achieve the socially optimal level of production.
B) marginal social benefit is less than marginal private benefit.
C) marginal social cost is more than marginal private cost.
D) without government intervention the market will produce too much of this good.
E) a subsidy to producers could increase production to the socially optimal level.

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