If a positive externality exists in a market, the unregulated market produces too little of a product at too low a price.

Name: If a positive externality exists in a market, the unregulated market produces too little of a product at too low a price.
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Question

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When a positive externality exists, the social benefits of a product exceed the private benefits, leading to underproduction and a lower price than what is socially optimal, as the market does not account for the external benefits.

If a Positive Externality Exists in a Market, the Unregulated