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The Following Graph Shows Market Equilibrium in the Presence of an Externality

Question 31

Multiple Choice

The following graph shows market equilibrium in the presence of an externality. The total social gain from producing the socially efficient output is:​ ​
Figure 17.2

The following graph shows market equilibrium in the presence of an externality. The total social gain from producing the socially efficient output is:​ ​ Figure 17.2 ​   A) $60. B) $30. C) $6. D) $480. E) $300.


A) $60.
B) $30.
C) $6.
D) $480.
E) $300.

Correct Answer:

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