When Will Firms Produce an Output Level That Is Above

question 16

Multiple Choice

When will firms produce an output level that is above the socially efficient level?

• A) when there are external costs of production equal to marginal benefits
• B) when there are internal costs of production and firms do not have to account for them
• C) when there are external costs of production and firms do not have to account for them
• D) when there are external costs of production and firms have account for them

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