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If a Producer Must Pay the Cost of His or Her

Question 218

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If a producer must pay the cost of his or her pollution because property rights have been assigned,then


A) pollution will be completely eliminated.
B) the supply curve will shift rightward as the new costs are added.
C) the supply curve will shift leftward as the new costs are added.
D) consumers will now consume more of the good because the external costs are reduced.
E) there is no longer any marginal benefit from the good or service being produced.

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