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MCQ Revision Question - Externalities and Welfare Losses

4,357 views · Published 3 April 2017 · 2:37 · Indexed 10 November 2026

Channel: tutor2u · 2017 · Education

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​This is a tricky analysis MC question asking students to calculate the area of net social benefit at the private optimum level of output in a situation where there are negative externalities in production. We take students through the correct reasoning behind the answer.

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