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Externalities and Welfare Losses - MCQ Revision Question

Level:: AS, A-Level, IB

Board:: AQA, Edexcel, OCR, IB, Eduqas, WJEC

Last updated 21 Mar 2021

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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.