Which statement is INCORRECT?
A) When external benefits exist in a market, Qmarket < Qefficient.
B) When external benefits exist in a market, social surplus is maximized when social benefits equal the marginal costs of production.
C) When external costs exist in a market, Qmarket > Qefficient.
D) Through taxation, government action can result in Qmarket = Qefficient.
Correct Answer:
Verified
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Figure: ABC
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Figure: Softella
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Q100: When external benefits are significant:
A) market output
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