If negative externalities are present in a market, ________
A) the price charged in the market is higher than the socially optimal price
B) the quantity supplied in the market is larger than the socially optimal level
C) the marginal social cost of production is lower than the marginal private cost
D) the average cost of production exceeds the marginal cost of production at all output levels
B
Economics
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Which diagram in Figure 9.4 shows what happens to investment as the economy enters a recession, causing both business expectations to collapse and saving to increase further, thus causing banks to lower interest rates?
A. A. B. B. C. C. D. D.
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