Which of the following statements is TRUE?
A) If the purchase of a good involves a positive externality, then the marginal social benefit is less than the marginal private benefit.
B) If the purchase of a good involves a positive externality, then the marginal external benefit exceeds the marginal private benefit.
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 the socially optimal quantity.
Correct Answer:
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