In order to achieve the socially optimal level of output, goods that entail positive externalities should be:
A)required.
B)subsidized.
C)taxed.
D)deregulated.

Name: In order to achieve the socially optimal level of output, goods that entail positive externalities should be: A)required. B)subsidized. C)taxed. D)deregulated.
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Question

Quizplus · Accepted Answer

Subsidizing activities that yield positive externalities compensates the generator for the benefits generated.

In Order to Achieve the Socially Optimal Level of Output