5. Because the market does not take into account the externalities associated with the production of pork,

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5. Because the market does not take into account the externalities associated with the production of pork, its market price

a. is higher and output lower than an efficient use of resources would generate.

b. is lower and output higher than an efficient use of resources would generate.

c. is lower and output lower than an efficient use of resources would generate.

d. is higher and output higher than an efficient use of resources would generate.

e. generates maximum efficiency because it is higher than the equilibrium price.

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Principles Of Microeconomics

ISBN: 9781913689681

7th Edition

Authors: Fred M. Gottheil

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Question Posted: Nov 08, 2024 02:01 AM

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5. Because the market does not take into account the externalities associated with the production of pork,

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Principles Of Microeconomics

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