The greater the magnitude of the external benefits of production,
A)The larger is the deadweight loss from overproduction.
B)The greater would be the optimal tax.
C)The less the private market solution would deviate from the socially efficient level of output.
D)All of the above are true.

Question

The greater the magnitude of the external benefits of production,
A)​The larger is the deadweight loss from overproduction.
B)​The greater would be the optimal tax.
C)​The less the private market solution would deviate from the socially efficient level of output.
D)​All of the above are true.

Quizplus · Accepted Answer

The Answer of The greater the magnitude of the external benefits of production,
A)​The larger is the deadweight loss from overproduction.
B)​The greater would be the optimal tax.
C)​The less the private market solution would deviate from the socially efficient level of output.
D)​All of the above are true.

The Greater the Magnitude of the External Benefits of Production