If a Market Is Characterized by a Positive Externality That

Multiple Choice

If a market is characterized by a positive externality that is not the result of a technology spillover,

A) the socially optimal level of output is less than the equilibrium level of output, and the optimal price is greater than the equilibrium price.
B) the socially optimal level of output is greater than the equilibrium level of output, and the socially optimal price is less than the equilibrium price.
C) the socially optimal level of output is greater than the equilibrium level of output, and the socially optimal price is greater than the equilibrium price.
D) the socially optimal level of output is less than the equilibrium level of output, and the socially optimal price is less than the equilibrium price.