The inefficiency created by a negative production externality can be overcome if the government subsidizes production of the good. Select one: True False

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Externalities
Section10.1: Externalities And Market Inefficiency
Problem 1QQ
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The inefficiency created by a negative production externality can be overcome if the government subsidizes production of the good.

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True
False
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