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If the Purchase of a Good Involves a Positive Externality

Question 82

Multiple Choice

If the purchase of a good involves a positive externality, then the equilibrium quantity that is purchased in a free market is _____ than socially optimal, and the equilibrium price is _____ than socially optimal.


A) less; less
B) less; more
C) more; less
D) more; more

Correct Answer:

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