Which Statement Is Correct Under a Market with Externalities

question 138

Multiple Choice

Which statement is correct under a market with externalities?

• A) Social surplus is maximized as long as consumer surplus is maximized.
• B) Social surplus is maximized as long as producer surplus is maximized.
• C) Social surplus is maximized as long as both consumer surplus and producer surplus are maximized.
• D) None of these statements is correct.

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