Suppose the production of a good results in positive externalities. If output occurs at the intersection of the marginal social benefits curve and the supply curve, then
A) output will be at a higher level than if all benefits were not taken into account.
B) output will be at a lower level than the socially optimal level.
C) the marginal private benefit curve will lie above and to the right of the marginal social benefit curve.
D) there will be underproduction.
E) all of the above
Correct Answer:
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Q41: If a person who generates a negative
Q42: Exhibit 30-2 Q43: Which of the following statements is true? Q44: Which of the following statements is false? Q45: Suppose the production of a good results Q47: When positive externalities are involved, the market Q48: Exhibit 30-2 Q49: When negative externalities are involved, the market Q50: Exhibit 30-2 Q51: Suppose the production of a good results Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
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A)When
A)A
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