If the Production of a Product Entails a Positive Externality

Multiple Choice

If the production of a product entails a positive externality, and the firm is not forced to consider the positive externality when deciding how much to produce, then the firm will produce

A) the efficient level of output, as long as P = MC.
B) an output level that is less than the efficient one.
C) the efficient level of output, as long as the firm is perfectly competitive.
D) an output level that is greater than the efficient one.