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    Microeconomics Study Set 3
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    Exam 18: Externalities, Open-Access, and Public Goods
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    If a Production Process Creates Positive Externalities,a Competitive Market Produces
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If a Production Process Creates Positive Externalities,a Competitive Market Produces

Question 14

Question 14

Multiple Choice

If a production process creates positive externalities,a competitive market produces too few positive externalities because the producer


A) does not pay all the costs of the externalities.
B) does not receive compensation for the externalities.
C) Both A and B.
D) None of the above.

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