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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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