Multiple Choice
Suppose the production of a good results in positive externalities. If output occurs at the intersection of the marginal social benefits curve and the supply curve, then
A) output will be at the socially optimal level.
B) the price of the product will be the same as it was when all benefits were not taken into account.
C) more output will be produced than if all benefits were not taken into account.
D) a and c
E) a, b, and c
Correct Answer:
Verified
Correct Answer:
Verified
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