When negative externalities are present, market failure often occurs because - 6125

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22) When negative externalities are present, market failure often occurs because

 

A.

the marginal external cost resulting from the activity is not reflected in the market price

 

B.

the marginal external cost resulting from the activity is reflected in the market price

 

C.

the existence of imports from foreign countries takes jobs and income away from U.S. citizens

 

D.

consumers will consume the good at a level where their individual marginal benefits exceed the marginal costs borne by the firm producing the good

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The ans