If a positive externality were present in a market,the social benefit curve would be:
A) below the private demand curve.
B) above the private demand curve.
C) the same as the private demand curve.
D) Cannot say without more information.

Question

Quizplus · Accepted Answer

A positive externality results in a social benefit that is greater than the private benefit. Therefore, the social benefit curve would be above the private demand curve.

If a Positive Externality Were Present in a Market,the Social