When an activity produces a positive externality, too much of it is produced relative to the efficient level.
A)True
B)False
C)Uncertain

Name: When an activity produces a positive externality, too much of it is produced relative to the efficient level. A)True B)False C)Uncertain
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Question

Quizplus · Accepted Answer

When an activity produces a positive externality, too little of it is produced relative to the efficient level because the social benefits exceed the private benefits, leading to underproduction.

When an Activity Produces a Positive Externality, Too Much of It