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    Microeconomics A Contemporary Introduction Study Set 1
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    Exam 17: Externalities and the Environment
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    Free Markets Produce Too Little Output When
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Free Markets Produce Too Little Output When

Question 58

Question 58

Multiple Choice

Free markets produce too little output when


A) negative externalities exist
B) positive externalities exist
C) production uses fixed-production technology
D) production uses variable technology
E) the resource is exhaustible

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