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The effect of an externality is that: production of a public good equals market demand. production of a private good equals market demand. true market

The effect of an externality is that:

production of a public good equals market demand.

production of a private good equals market demand.

true market demand for public goods may be determined by the number of consumers that pay for the goods.

the producer of a public good has a limited incentive to produce it because all consumers cannot be charged for the good.

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