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If a Good Has an External Cost,then the Marginal Private

Question 252

Multiple Choice

If a good has an external cost,then the marginal private cost curve


A) lies below then the marginal social cost curve.
B) lies above the marginal social cost curve.
C) lies below the horizontal axis.
D) is the same as the marginal external cost curve.
E) is undefined because the firms' costs are not equal to the social costs.

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