If a Market Generates a Positive Externality, the Social Value

question 7

True/False

If a market generates a positive externality, the social value curve is above the demand curve (private value curve).

---

Definitions:

Height In Plane

The measure of an object or point's vertical distance from a reference point or base level, typically in aviation or geometry contexts.

Perceptual Constancy

Perceptual constancy refers to the psychological phenomenon where people perceive the size, shape, and color of objects as unchanging even as the images on our retina change.

Linear Perspective

A technique in art and photography that creates the illusion of depth and distance on a flat surface using converging lines.

Accommodation

In psychology, the process of modifying existing cognitive schemas, perceptions, and understandings to incorporate new information.