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    Microeconomics Theory with Applications
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    Exam 18: Assymmetric Information, the Rules of the Game, and Externalities
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    When a Positive Externality Is Present
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When a Positive Externality Is Present

Question 79

Question 79

Multiple Choice

When a positive externality is present:


A) resources are underallocated to the source of externality.
B) transaction costs are positive.
C) there is no possibility to increase the gains from trade.
D) resources are overallocated to the source of externality.

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