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Which of the Following Is True If the Production of a Good

Question 94

Multiple Choice

Which of the following is true if the production of a good gives rise to a positive externality?


A) The marginal social benefit from each level of output exceeds the consumers' willingness to pay.
B) The marginal private benefit from production exceeds the marginal social benefit.
C) The demand curve for the good shifts to the left in the presence of positive externalities.
D) The demand curve for the good shifts to the right in the presence of positive externalities.

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