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If the Government Overcorrected in a Situation of External Costs

Question 95

Multiple Choice

If the government overcorrected in a situation of external costs


A) ​More than the efficient amount of the good would end up being produced.
B) ​Less than the efficient amount of the good would end up being produced.
C) ​It would result in a welfare cost in that market.
D) Both b and c are would result.

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