When a positive externality is present in a market,the quantity consumed:
A) is always more than the socially optimal quantity.
B) is the same as the socially optimal quantity.
C) is often more than the socially optimal quantity.
D) is less than the socially optimal quantity.

Question

Quizplus · Accepted Answer

When a positive externality is present, the market fails to account for the external benefits, leading to underconsumption relative to the socially optimal level.

When a Positive Externality Is Present in a Market,the Quantity