A positive externality exists when
A) a person's or group's actions cause a benefit that is felt by others.
B) a person's or group's actions cause a cost that is felt by others.
C) market output is less than socially optimal output.
D) a and c
E) b and c
Correct Answer:
Verified
Q93: A negative externality exists when
A)marginal social costs
Q94: When marginal private cost is less than
Q95: A positive externality exists when
A)marginal social costs
Q96: If a positive externality exists, _ in
Q97: If an asymmetry of information is removed
Q99: A side effect of an action that
Q100: If the government does not provide it,
Q101: A positive externality is internalized when
A)demand shifts
Q102: Exhibit 30-3 Q103: A subsidy may be used as a
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