When positive externalities are involved, the market is said to
A) fail, because it underproduces the good connected with the positive externality.
B) fail, because it overproduces the good connected with the positive externality.
C) succeed, because it produces the socially optimal quantity of the good connected with the positive externality.
D) be "in optimum," because the equilibrium fully adjusts for the positive externality.
Correct Answer:
Verified
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 Q46: Suppose the production of a good results Q48: Exhibit 30-2 Q49: When negative externalities are involved, the market 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
A)When
A)A
