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One Way Government Could Intervene When External Diseconomies Exist in an Industry

Question 30

Multiple Choice

One way government could intervene when external diseconomies exist in an industry is to act to


A) shift the industry demand curve to the right.
B) shift the industry supply curve to the left.
C) subsidize the industry to raise its profits.
D) encourage increased production of the industry's product.
E) make the industry's supply curve more nearly reflect the supply curve of a competitive industry.

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