25.There are many small firms producing paper in a community. Each firm's goods areidentical to the others. The firms have always used to river to dump manufacturing wastes.Which of the following is true?There is no market failure in the industry.а.b.There is market failure because of the externalities.C.There is market failure because this description suggests an oligopolistic industry.

Externality refers to the situation when a transaction is performed by an individual or two…

Answered: 25. There are many small firms…

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter11: Public Goods And Common Resources

Section: Chapter Questions

Problem 6CQQ

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