If the Production of a Good Created Both External Costs

question 83

Multiple Choice

If the production of a good created both external costs and external benefits, but the external costs were greater, without government intervention, a market economy will:

• A)​not produce the product at all.
• B)​overproduce the product.
• C)​underproduce the product.
• D)​produce the optimal amount of the product.

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