Consider a Setting in Which There Is a Positive Externality,but

question 28

Multiple Choice

Consider a setting in which there is a positive externality,but no negative externality.The market outcome is __________________; government can bring about the ___________________ outcome if it sets a subsidy equal to the __________________.

• A) inefficient; efficient; MEB
• B) inefficient; efficient; MEC
• C) efficient; inefficient; MPC
• D) inefficient; efficient; MPB
• E) inefficient; efficient; MSB

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Definitions:

Disjunction

Disjunction is a logical operation that results in true if at least one of the operands is true; in propositional logic, it's represented by the OR operator.

Event

An occurrence or happening, especially one of significance, that can be observed or participated in.

Dependent

Relies on or is determined by another object, condition, or factor.

Independent Events

Two or more events where the occurrence of one does not affect the probability of the other(s).