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If the Equilibrium Quantity Is Equal to the Socially Optimal

Question 9

Multiple Choice

If the equilibrium quantity is equal to the socially optimal quantity, one can infer that:


A) the supply curve for the activity is below the socially optimal supply curve.
B) there is no externality associated with this good.
C) there is a positive externality associated with this good.
D) there is a negative externality associated with this good.

Correct Answer:

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