When a Negative Externality Is Internalized in a Market,total Surplus

question 137

Multiple Choice

When a negative externality is internalized in a market,total surplus:

• A)increases,but producer and consumer surplus both fall.
• B)decreases,because producer and consumer surplus both fall.
• C)increases,because producer surplus increases.
• D)decreases,because consumer surplus falls more than producer surplus increases.

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