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If a Positive Externality Is Associated with the Purchase of Smoke

Question 64

Multiple Choice

If a positive externality is associated with the purchase of smoke detectors:


A) the marginal social benefit of smoke detectors exceeds their price.
B) the marginal social benefit of smoke detectors is zero.
C) the marginal social benefit of smoke detectors equals their price.
D) more than the efficient quantity of smoke detectors will be sold.

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