Solved

Suppose the Production of a Good Results in Positive Externalities

Question 51

Multiple Choice

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents