If the production of a product is associated with an external benefit, and the firm does not consider the external benefit when deciding how much to produce, then the firm will produce:
A) the efficient level of output, as long as P = MC
B) the efficient level of output, as long as the firm is perfectly competitive
C) an output level that is greater than the efficient one
D) an output level that is less than the efficient one
Correct Answer:
Verified
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