Multiple Choice
Figure 5-3

-Refer to Figure 5-3.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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