Private incentives in markets with external benefits lead to _____;private incentives in markets with external costs lead to _____.
A)maximum total economic surplus;deadweight loss
B)deadweight loss;deadweight loss
C)excess total economic surplus;efficiency
D)excess total economic surplus;deadweight loss

Question

Quizplus · Accepted Answer

An uncorrected externality creates an inefficiency,or deadweight loss.

Private Incentives in Markets with External Benefits Lead to _____;Private