S, Refer to the above diagram in which is the market supply curve and S, is...
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·S, Refer to the above diagram in which is the market supply curve and S, is a supply curve comprising all costs of production, including external costs. Assume that the number of people affected by these external costs is large. Without government interference, this market will result in: A. an underallocation of resources to this product. B. an overallocation of resources to this product. C. an optimal allocation of society's resources. D. a higher price than is consistent with an optimal allocation of resources. ·S, Refer to the above diagram in which is the market supply curve and S, is a supply curve comprising all costs of production, including external costs. Assume that the number of people affected by these external costs is large. Without government interference, this market will result in: A. an underallocation of resources to this product. B. an overallocation of resources to this product. C. an optimal allocation of society's resources. D. a higher price than is consistent with an optimal allocation of resources.
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