Economics 9708 · AS & A Level · 7.4

7.4 — practice question

Which statement about a product that creates external costs must be correct?

  • AThe consumption of the product has positive effects on third parties.
  • BThe private costs of its production exceed the social costs of its production.
  • CThe production of the product has negative effects on third parties.
  • DThe social costs of its production exceed the social benefits of its production.

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