In a market with positive externalities,the market equilibrium quantity will be less than the efficient equilibrium quantity.

Question

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In a market with positive externalities, the social benefit of the good or service exceeds the private benefit. As a result, individuals may consume less than is socially optimal. Therefore, the market equilibrium quantity will be less than the efficient equilibrium quantity where social marginal benefit equals social marginal cost.

In a Market with Positive Externalities,the Market Equilibrium Quantity Will