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Compared to Ideal Economic Efficiency, When the Production of a Good

Question 21

Multiple Choice

Compared to ideal economic efficiency, when the production of a good generates external costs, competitive markets will result in an output that is too:


A) large and a price that is too high.
B) large and a price that is too low.
C) small and a price that is too high.
D) small and a price that is too low.

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