Multiple Choice
When a firm creates negative externalities by polluting, in order to achieve the socially efficient outcome:
A) the firm's production should be prohibited.
B) the firm's production should be increased and the price of its output should be decreased.
C) the firm's production should be increased and the price of its output should be increased.
D) the firm's production should be reduced and the price of its output should be increased.
Correct Answer:
Verified
Correct Answer:
Verified
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