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The Market Will Overproduce Goods That Have External Costs Because

Question 50

Multiple Choice

The market will overproduce goods that have external costs because


A) Producers experience lower costs than society.
B) Producers experience higher costs than society.
C) The government is not able to produce these goods.
D) Producers cannot keep these goods from consumers who do not pay,so they have to produce greater amounts.

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