Which of the Following Describes How a Positive Externality Affects

Multiple Choice

Which of the following describes how a positive externality affects a competitive market?

A) The externality causes a difference between the private benefit from consumption and the social benefit.
B) The externality causes a difference between the private benefit from production and the social cost of production.
C) The externality causes quantity demanded to exceed quantity supplied.
D) The externality causes a difference between the social cost of production and the social cost of consumption.