Consider a good produced in a competitive market that has external costs. Too ______________ of the good will be produced for economic efficiency and the price will be ______________ than the price that will convince consumers to purchase the efficient amount.
A. Little; lower
B. Little; higher
C. Much; lower
D. Much; higher
I feel like its either (C. Much; lower) or (A. Little; lower) but can’t really be sure which one is more correct. Any help would be appreciated.
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