If Education Produces Positive Externalities and the Government Does Not

Multiple Choice

If education produces positive externalities and the government does not intervene in the market, we would expect

A) ​the market equilibrium price to be higher than the efficient equilibrium price.
B) ​the market equilibrium quantity to be lower than the efficient equilibrium output level.
C) ​the market equilibrium quantity to be higher than the efficient equilibrium output level.
D) ​none of the above