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In the Absence of Government Intervention, a Profit-Maximizing Firm Producing

Question 23

Multiple Choice

In the absence of government intervention, a profit-maximizing firm producing a good with an external cost will produce a quantity at which


A) price is greater than marginal private cost.
B) price is less than marginal revenue.
C) price is less than marginal private cost.
D) price equals marginal private cost.
E) marginal revenue equals marginal social cost.

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