Refer to Figure 9.10 to answer this question. Which of the following statements is true if external costs are recognized but external benefits are not? OA) The price would be P₁. B) The price would be P2. C) The price would be P3. D) The price would be P4.

Economics: Private and Public Choice (MindTap Course List)
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ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter5: Difficult Cases For The Market And The Role Of Government
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FIGURE 9.10
Price
MSC
MSB
MPB
а, о, о, о,
Quantity per period
Refer to Figure 9.10 to answer this question. Which of the following statements is
true if external costs are recognized but external benefits are not?
OA) The price would be P₁.
B) The price would be P₂.
MPC
OC) The price would be P3.
O D) The price would be P4.
Transcribed Image Text:FIGURE 9.10 Price MSC MSB MPB а, о, о, о, Quantity per period Refer to Figure 9.10 to answer this question. Which of the following statements is true if external costs are recognized but external benefits are not? OA) The price would be P₁. B) The price would be P₂. MPC OC) The price would be P3. O D) The price would be P4.
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