In general, positive externalities result in
A)too much of a good being produced compared to the socially optimal level.
B)the socially optimal output of a good being produced.
C)too little of a good being produced compared to the socially optimal level.
D)a higher price compared to the price charged at the socially optimal level.

Question

Quizplus · Accepted Answer

Positive externalities occur when the benefits of a good or service extend beyond the individual consumer to society at large. This often leads to underproduction of the good compared to the socially optimal level, as the market fails to account for the external benefits.

In General, Positive Externalities Result in