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Suppose a Business Firm Dumps Its Used Car Batteries into the Mississippi

Question 192

Multiple Choice

Suppose a business firm dumps its used car batteries into the Mississippi River.


A) The company's actions constitute an external cost.
B) The company's actions constitute an external benefit.
C) The company's actions would be an example of the market system efficiently allocating resources.
D) The company's actions damage no one but itself.

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