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Question #47679

A positive externality (that has not been internalized) caused the ?

Options:

A) equilibrium quantity to exceed the optimal quantity

B) equilibrium quantity to equal the optimal quantity

C) optimal quantity to exceed the equilibrium quantity

D) equilibrium quantity to be either above or below the optimal quantity

Answer: A positive externality (that has not been internalized) caused the optimal quantity to exceed the equilibrium quantity.

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