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If a Negative Externality Is Associated with Burning Firewood

Question 37

Multiple Choice

If a negative externality is associated with burning firewood:


A) the marginal social cost of burning firewood falls short of its price.
B) the marginal social cost of burning firewood is exactly equal to its price.
C) less than the efficient amount of firewood for burning will be used each year.
D) the marginal social cost of burning firewood exceeds the price of burning firewood.

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