Explain How Positive Externalities Cause a Wedge Between Private Marginal

question 34

Essay

Explain how positive externalities cause a wedge between private marginal costs and social marginal costs.Give an example of a positive externality and explain why it is,in fact,a positive externality.Draw a supply/demand diagram and add a social marginal cost curve that represents the presence of the positive externality.Explain the relationship between the equilibrium quantity and that which is socially efficient.

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Definitions:

School Performance

An evaluation of a student’s academic work and achievements in an educational setting.

Test Bias

Describes a situation in which a test or assessment produces unfair results, favoring one particular group over others.

Mechanical Abilities

Skills related to understanding and working with mechanical systems and machinery, often involving problem-solving and manual dexterity.

Test Bias

Test bias refers to a systematic error in a test that results in different meanings or outcomes for different groups, undermining its fairness or accuracy.