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Economics (AS & A Level) · Oct / Nov 2022 · Paper 32 · Question 2

9708Private costs and benefits, externalities and social costs and benefits

The diagram shows a market in which there are negative externalities of production and positive externalities of consumption. What is the marginal external cost at the free market equilibrium level of output?

  1. AEG
  2. BEF
  3. CFG
  4. DHI

As printed in the paper

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Correct answer: A. EG

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