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If a good has a negative externality: Choice 1 of 3:the free market produces the efficient quantity of the good and there is no DWL

If a good has a negative externality: Choice 1 of 3:the free market produces the efficient quantity of the good and there is no DWL Choice 2 of 3:the free market produces more than the efficient quantity of the good, generating DWL Choice 3 of 3:the free market produces less than the efficient quantity of the good, generating DWL

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