-If D₁ is the demand curve reflecting externalities in this industry
A) external diseconomies are present.
B) taxing producers is warranted to reduce output.
C) the optimal output from society's standpoint is 0Q₀.
D) the social benefits from production are greater than those measured by the industry's demand curve.
E) subsidies to producers are too high and should be reduced or eliminated altogether.
Correct Answer:
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