Which of the Following Is True of Markets Characterized by Positive

Multiple Choice

Which of the following is true of markets characterized by positive externalities?

A) Social value exceeds private value, and market quantity exceeds the socially optimal quantity.
B) Social value is less than private value, and market quantity exceeds the socially optimal quantity.
C) Social value exceeds private value, and market quantity is less than the socially optimal quantity.
D) Social value seldom exceeds private value; therefore, social quantity is less than private quantity.