Multiple Choice
Suppose that the consumption of a good involves a positive externality. In this case, at the free-market equilibrium quantity, the marginal _____ will exceed the marginal:
A) social benefit; private cost.
B) cost; social benefit.
C) private benefit; private cost.
D) private benefit; social benefit.
Correct Answer:

Verified
Correct Answer:
Verified
Q42: _ markets are essential for achieving an
Q43: The reason that a good is underpurchased
Q44: Suppose that the purchase of a good
Q45: Karim wants to invest $100 in the
Q46: Which of the following statements is NOT
Q48: The antitrust laws enacted by the federal
Q49: The use of modern insecticides in farms
Q50: The undesirable side effects that are felt
Q51: Use Figure: Positive Externalities and Deadweight Loss.
Q52: If the marginal private benefit from consuming