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A Negative Production Externality Can Occur When

Question 2

Multiple Choice

A negative production externality can occur when:


A) The Social Marginal Benefit is greater than the Social Marginal Cost
B) The Social Marginal Cost is greater than the Private Marginal Cost
C) The Private Marginal Benefit is less than the Social Marginal Benefit
D) The Social Marginal Cost is greater than the Private Marginal Benefit

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