When the Production of a Good Results in a Positive

Multiple Choice

When the production of a good results in a positive externality, the social value curve is

A) below the demand curve, indicating that the total value to society is less than the private benefit.
B) above the demand curve, indicating that the total value to society is greater than the private benefit.
C) identical to the demand curve, indicating that the total cost to society is the equal to the private benefit.
D) above the supply curve, indicating that the total cost to society exceeds the private cost.