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In the Absence of Government Intervention,a Profit-Maximizing Firm Producing a Good

Question 26

Multiple Choice

In the absence of government intervention,a profit-maximizing firm producing a good with an external cost will produce a quantity at which


A) price is greater than marginal private cost.
B) price is less than marginal social benefit.
C) price is less than marginal private cost.
D) price equals marginal private cost.
E) marginal social benefit equals marginal social cost.

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