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In the Case of Either a Positive or Negative Externality,it

Question 22

Multiple Choice

In the case of either a positive or negative externality,it will always be true that,relative to the social optimum:


A) the market price will be too low.
B) the market price will be too high.
C) the market price will send an inaccurate signal of true cost or benefit.
D) the quantity provided by the market will be too large.

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