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In a competitive market, if the production process involves an external cost, such as pollution of the environment, the market will: a

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In a competitive market, if the production process involves an external cost, such as pollution of the environment, the market will:

a. Produce the economically efficient outcome,

b. Result in a market price that is higher than the efficient one,

c. Result in a market price that is lower than the efficient one,

d. Result in too little of the good being produced compared to the ideal efficient outcome.