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 | |