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If Consuming a Good Creates a Positive Externality

Question 189

Multiple Choice

If consuming a good creates a positive externality,


A) marginal private benefits exceed marginal social benefits
B) marginal social benefits exceed marginal private benefits
C) private demand is equal to marginal social benefit
D) private demand is greater than marginal social benefit
E) the private demand curve shifts to the right to coincide with the marginal social benefit curve

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