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An increase in appraisal costs in a quality improvement program would usually have the followinginitial effects on internal and external failure costs:Internal failure costsExternal failure costsA.IncreaseIncreaseB.DecreaseIncreaseC.DecreaseDecreaseD.IncreaseDecreaseE.No effectIncreaseChoice AChoice BChoice CChoice DChoice E
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Why are spillover costs and spillover benefits also called negative and positive externalities? Show graphically how a tax can correct for a negative externality and how a subsidy to producers can correct for a positive externality. How does a subsidy to consumers differ from a subsidy to producers in correcting for a positive externality? | Numerade
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