

MCQOPTIONS
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1. |
A positive externality occurs when ? |
A. | The social marginal costs are higher than the private marginals costs |
B. | A product is not provided in the free market |
C. | The social marginal cost equal the social marginal benefit |
D. | The social marginal benefits are higher than the private marginal benefits |
Answer» B. A product is not provided in the free market | |