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Consider a market where production of a good generates a negative externality. In the market equilibrium, Question 7 Select one: a . the market price
Consider a market where production of a good generates a negative externality. In the market equilibrium,
Question Select one:
a
the market price is above the socially optimal price.
b
the external costs have been internalized.
c
firms are not maximizing profit.
d
too much of the good is being produced.
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