If there are positive externalities from education,the market will not produce the socially optimal level of education.

Question

Quizplus · Accepted Answer

Positive externalities from education create additional benefits for society beyond the private benefit received by the individual who receives the education. As a result, the market will not take these externalities into account and will therefore produce a quantity of education that is lower than the socially optimal level.

If There Are Positive Externalities from Education,the Market Will Not