Multiple Choice
The following graph shows market equilibrium in the presence of externality in an economy. The equilibrium price and output (determined exclusively by private decisions) are _____.
Figure 17.2
A) $6 and 50 units, respectively
B) $12 and 50 units, respectively
C) $12 and 40 units, respectively
D) $6 and 40 units, respectively
E) less than $6 and more than 50 units, respectively
Correct Answer:
Verified
Correct Answer:
Verified
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