Multiple Choice
If consuming a good creates a positive externality,_____
A) the marginal private benefits from consuming the good exceed the marginal social benefits.
B) the marginal social benefits from consuming the good exceed the marginal private benefits.
C) the private demand for the good is equal to the marginal social benefit.
D) the private demand for the good is greater than the marginal social benefit.
E) the private demand curve for the good shifts to the right to coincide with the marginal social benefit curve.
Correct Answer:

Verified
Correct Answer:
Verified
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