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Suppose the Production of Roses Generates a Positive Externality in That

Question 123

Multiple Choice

Suppose the production of roses generates a positive externality in that travelers enjoy the scenic rural vistas.Then the market quantity of roses produced and consumed:


A) is less than the socially optimal quantity.
B) is more than the socially optimal quantity.
C) equals the socially optimal quantity.
D) may be more than, less than, or equal to the socially optimal quantity.

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