When a Positive Externality Generated from the Production of a Good

Multiple Choice

When a positive externality generated from the production of a good has not been internalized,then:

A) the socially optimal quantity of output must be larger than the market level of output.
B) the socially optimal quantity of output must be less than the market level of output.
C) the socially optimal quantity of output must be equal to the market level of output.
D) the socially optimal quantity of output can be either larger or smaller than the market level of output.