In the presence of a negative externality
A) the market solution is efficient,but the market price is too high
B) the market price is efficient,but the corresponding quantity is inefficient
C) the market solution results in too little output being produced
D) the efficient outcome is determined where the marginal social cost and market demand curves intersect
E) the efficient outcome is determined where the marginal cost and market supply curves intersect
Correct Answer:
Verified
Q58: When breaking up a natural monopoly is
Q59: Talking loudly in a library creates
A)a market
Q60: Pollution is a form of market failure
Q61: Because of the free rider problem
A)private solutions
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