Which of the following statements is NOT true?
A) If the purchase of a good involves a positive externality, then the marginal social benefit exceeds the marginal private benefit.
B) If the purchase of a good involves a positive externality, then the marginal external benefit is positive.
C) If the purchase of a good involves a positive externality, then there is no deadweight loss.
D) If the purchase of a good involves a positive externality, then the quantity purchased is less than socially optimal.
Correct Answer:
Verified
Q3: _ markets are essential for achieving an
Q4: If the marginal social benefit from consuming
Q5: If beekeepers benefit from their neighbor's flower
Q6: The marginal social benefit is the sum
Q7: If the purchase of a good creates
Q9: Which of the following statements is TRUE?
A)
Q10: The extra benefit received by everyone in
Q11: Suppose that the purchase of a good
Q12: Suppose that the marginal social benefit curve
Q13: Suppose that beekeepers' bees pollinate a neighbor's
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