One of the Reasons Why Private Markets Produce Less Than

question 137

Multiple Choice

One of the reasons why private markets produce less than the socially optimal level of goods that yield positive externalities is that

• A) producers do not know that their goods yield positive externalities.
• B) the market does not benefit from goods that yield positive externalities.
• C) positive externalities are often unpriced.
• D) those goods are usually taxed heavily.
• E) prices are already too high and consumers refuse to pay more.