Consider a Setting in Which There Is a Positive Externality,but

Multiple Choice

Consider a setting in which there is a positive externality,but no negative externality.The market outcome is __________________; government can bring about the ___________________ outcome if it sets a subsidy equal to the __________________.

A) inefficient; efficient; MEB
B) inefficient; efficient; MEC
C) efficient; inefficient; MPC
D) inefficient; efficient; MPB
E) inefficient; efficient; MSB