If Consuming a Good Creates a Positive Externality

question 189

Multiple Choice

If consuming a good creates a positive externality,

• A)marginal private benefits exceed marginal social benefits
• B)marginal social benefits exceed marginal private benefits
• C)private demand is equal to marginal social benefit
• D)private demand is greater than marginal social benefit
• E)the private demand curve shifts to the right to coincide with the marginal social benefit curve

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