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When the Production of a Good Creates a Positive Externality

Question 85

Multiple Choice
When the production of a good creates a positive externality,

When the production of a good creates a positive externality,


A) external costs will be present.
B) market output will be less than the socially optimal output level.
C) market output will be more than the socially optimal output level.
D) marginal social cost exceeds marginal private cost at the market equilibrium quantity.
E) private costs are equal to social costs.

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