A good that has social costs that are less than private costs has a quantity that is

Question

Quizplus · Accepted Answer

When a good has social costs that are less than private costs, it means that the externalities associated with its production or consumption are positive, implying that society benefits more from the good than the costs incurred in producing it. Therefore, the market tends to produce less of this good than is socially optimal, making the quantity too low.

A Good That Has Social Costs That Are Less Than