Assuming Education Results in a Positive Externality, Which of the Following

question 489

Multiple Choice

Assuming education results in a positive externality, which of the following statements is correct?

• A)The social cost of producing education exceeds the private cost of producing education.
• B)The positive externality can be depicted on a graph by the vertical distance between the supply curve and the social-cost curve.
• C)The socially optimal quantity of education will exceed the market equilibrium quantity of education.
• D)All of the above are correct.

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