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    Economics Study Set 10
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    Exam 30: Market Failure Externalities Public Goods and Asymmetric Information
  5. Question
    If a Positive Externality Exists, __________ in Order for the Socially
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If a Positive Externality Exists, __________ in Order for the Socially

Question 159

Question 159

Multiple Choice

If a positive externality exists, __________ in order for the socially optimal output to be reached.


A) supply needs to decrease
B) demand needs to increase
C) demand needs to decrease
D) a and c
E) none of the above

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