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When an External Cost Associated with the Production of Some

Question 26

Multiple Choice

When an external cost associated with the production of some good has been internalized, it means that


A) the consumer must bear the net social benefits imposed by the producer.
B) the producer must bear the external costs imposed by production.
C) the private cost of production is borne by the producer.
D) the firm is ignoring social costs.
E) the opportunity cost of production is passed on to the consumer.

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