Suppose the production of a good results in positive externalities. If output occurs at the intersection of the supply curve and the marginal social benefits curve, then
A) the socially optimal level of output will be produced.
B) society will incur a net social cost.
C) society will want less produced, and producers will be willing to satisfy that desire.
D) there is market failure.
Correct Answer:
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Q46: 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 Q52: Given a positive externality, the marginal social Q53: When a positive externality exists, Q54: In which of the following situations would Q55: Exhibit 30-2 Q56: Exhibit 30-2 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)external benefits are
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