Multiple Choice
When a subsidy is imposed on a market with a positive externality, efficiency:
A) is not affected.
B) decreases.
C) increases.
D) drops to zero.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q98: If a positive consumption externality were present
Q99: The graph shown displays a market with
Q100: Any cost that is imposed without compensation
Q101: If the social cost is greater than
Q102: In order to bring a market to
Q104: If a company who takes an externality
Q105: Maximizing total surplus in a market depends
Q106: If a Pigovian tax is levied on
Q107: When positive consumption externalities are present in
Q108: If the costs of coordination and enforcement