Exhibit 8-1 
Refer to Exhibit 8-1.Suppose that education provides spillover benefits to the community as illustrated in the diagram.Based on this information,we can say that:
A) the market would fall short of the desirable level of education, Q0.
B) education is overproduced by Q1 minus Q0 units.
C) the socially optimal quantity of education is Q1 units.
D) the socially optimal quantity of education is Q0 units.
Correct Answer:
Verified
Q68: Currently Q0 of electrical power is being
Q73: Exhibit 8-1 Q81: To internalize a positive externality: Q90: If there are significant external benefits associated Q102: As an additional consumer obtains the benefits Q103: If firms were required to pay the Q107: Which of the following is an example Q108: If the production of a particular good Q119: A corrective tax equal to the external Q120: If the production of a particular good
A)the consumers of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents