Exhibit 31-4

-Refer to Exhibit 31-4.If a negative externality exists,then curve __________ represents the marginal social cost curve and the area __________ represents the market failure.
A) 1; ACB
B) 3; BCD
C) 2; BCD
D) 3; ACB
E) 2; ACB
Correct Answer:
Verified
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A)the parties on one