Exhibit 30-1
?
A. It is the quantity of output at which marginal social costs (MSC) equal marginal private costs (MPC).
B. It is the quantity of output at which MPC > MSC.
C. It is the market output; it is the quantity of output that exists if the external costs associated with the negative externality are not taken into account.
D. It is the socially optimal output; it is the quantity of output that exists if the external costs associated with the negative externality are taken into account.
E. none of the above
Answer: C
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