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If the Production of a Good Created Both External Costs

Question 83

Multiple Choice

If the production of a good created both external costs and external benefits, but the external costs were greater, without government intervention, a market economy will:


A) ​not produce the product at all.
B) ​overproduce the product.
C) ​underproduce the product.
D) ​produce the optimal amount of the product.

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