Multiple Choice
Suppose that the marginal social benefit curve of a good lies above the marginal private benefit curve. In this case, the purchase of the good involves a _____ externality, and the good will be purchased in an amount that is _____ than the socially optimal.
A) negative; less
B) negative; more
C) positive; less
D) positive; more
Correct Answer:
Verified
Correct Answer:
Verified
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