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If an Unregulated Activity Produces a Negative Externality,one Can Infer

Question 2

Multiple Choice

If an unregulated activity produces a negative externality,one can infer that the


A) equilibrium price is greater than the socially optimal price.
B) demand for the activity is greater than the socially optimal demand.
C) equilibrium quantity is greater than the socially optimal quantity.
D) equilibrium quantity is less than the socially optimal quantity.
E) supply of the activity is less than the socially optimal supply.

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