The following graph (see link below) represents the market for high-emission cars. Answer the following questions assuming
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Question:
The following graph (see link below) represents the market for high-emission cars. Answer the following questions assuming that the externality is not internalised.
http://bit.ly/2CkjkEr
Which quantity is socially optimal (i.e. what is the efficient quantity)?
A.Q1
B.Q2
C.Q3
D.Q4
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