Which of the following statements is true?
A) When production of a good yields positive externalities but output is currently at the market level, then a change in output to the socially optimal level will certainly be for the worse.
B) When production of a good yields negative externalities but output is currently at the market level, then a change in output to the socially optimal level will cause benefits to increase by an amount greater than costs will increase.
C) When production of a good yields positive externalities but output is currently at the market level, then a change in output to the socially optimal level will cause benefits to increase by an amount less than costs will increase.
D) When production of a good yields positive externalities but output is currently at the market level, then a change in output to the socially optimal level will be a net change for the better.
Correct Answer:
Verified
Q41: If a person who generates a negative
Q44: Which of the following statements is false?
A)A
Q47: When positive externalities are involved, the market
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