Question: In the case of a negative externality, when only private costs are considered, the producer is: a. Over-allocating resources b. Under-allocating resources c. Charging a

In the case of a negative externality, when only private costs are considered, the producer is:

  1. a. Over-allocating resources
  2. b. Under-allocating resources
  3. c. Charging a higher than efficient price
  4. d. Increasing consumer surplus

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