If a Good That Involves External Costs Is Priced to Take

question 85

Multiple Choice

If a good that involves external costs is priced to take these costs into account, then its:

• A) price would fall and output would go up.
• B) price would rise and output would fall.
• C) price would not change but output would fall.
• D) price would rise but output would stay the same.

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Definitions:

Civil Liberties

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