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If Consumers Were Able to Receive the Full Social Benefits

Question 91

Multiple Choice

If consumers were able to receive the full social benefits associated with the consumption of goods involving positive externalities, other things being equal, there would probably be:


A) ​an increase in consumption.
B) ​a decrease in consumption.
C) ​a greater misallocation of resources.
D) ​a decrease in the market price of the product.

Correct Answer:

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