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If There Are External Benefits Associated with the Consumption of a Good

Question 118

Multiple Choice

If there are external benefits associated with the consumption of a good or service,


A) the private demand curve will overestimate the true demand curve.
B) the private demand curve will underestimate the true demand curve.
C) consumers are paying for all these benefits in private markets.
D) the market demand curve will be the vertical summation of the individual demand curves.

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