Multiple Choice
Exhibit 30-4
Refer to Exhibit 30-4. If a negative externality exists, then the external costs associated with the negative externality equal the distance between points __________, and the socially optimal output is __________.
A) A and C; Q2
B) D and B; Q1
C) C and B; Q2
D) A and B; Q2
Correct Answer:
Verified
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