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Question
In the above figure, S1 represents the supply curve which includes private costs, and S2 is the supply curve which includes social costs. If the firm is producing a product that has external costs that the firm does have to pay, what will be the equilibrium price and quantity?
A) P1, Q4
B) P2, Q3
C) P4, Q1
D) P3, Q2
Answer
This answer is hidden. It contains 1 characters.
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