Consider a Market Where Production of the Good Is Creating

question 130

Multiple Choice

Consider a market where production of the good is creating a negative externality. In the market equilibrium, there is a deadweight loss because the:

• A) internal cost is not equal to the external cost.
• B) internal cost is not equal to the internal benefit.
• C) internal benefit is not equal to the external benefit.
• D) social cost is greater than the internal benefit.
• E) internal benefit is less than the internal cost.

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