Multiple Choice

Figure 4-17

-Refer to Figure 4-17.At the competitive market equilibrium,for the last unit produced,
A) the size of the external cost is Pm - Pₒ.
B) the size of the external benefit is Pm - Pₒ.
C) the size of the external cost is Pn - Pₒ.
D) the size of the external benefit is Pn - Pₒ.
Correct Answer:
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