Which of the Following Is True of Markets Characterized by Positive

question 130

Multiple Choice

Which of the following is true of markets characterized by positive externalities?

• A)Social value exceeds private value, and market quantity exceeds the socially optimal quantity.
• B)Social value is less than private value, and market quantity exceeds the socially optimal quantity.
• C)Social value exceeds private value, and market quantity is less than the socially optimal quantity.
• D)Social value seldom exceeds private value; therefore, social quantity is less than private quantity.