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The Production of a Good with Positive Externalities Will Increase

Question 37

Multiple Choice

The production of a good with positive externalities will increase when:


A) the government provides a subsidy for the good.
B) the marginal internal cost of the good is higher than the marginal total cost.
C) there is a price ceiling of zero in the market.
D) the producer sells the good for a very high price markup.
E) there are a large number of buyers and sellers in the market.

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