-What Would Happen in a Free Market System When Production

question 105

Multiple Choice

-What would happen in a free market system when production of a good generates negative externalities?

• A) There is a shortage of the good.
• B) There is a surplus of the good.
• C) The equilibrium quantity of the good is less than the efficient amount.
• D) The equilibrium quantity of the good is more than the efficient amount.

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