In a Market with Positive Externalities

question 103

Multiple Choice

In a market with positive externalities,

• A) the efficient level of production is less than what competition will obtain.
• B) the efficient level of production is equal to what competition will obtain.
• C) the efficient level of production is more than what competition will obtain.
• D) there cannot be an efficient level of production.

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Definitions:

Hull

Refers to Clark L. Hull, a psychologist known for his work in drive theory and behaviorism, emphasizing the importance of rigorous scientific methods in psychological research.

Drive

An intense internal force that motivates behavior.

Homeostasis

The tendency to maintain equilibrium by adjusting physiological or psychological processes.

Primary Drives

Basic, innate drives that motivate behavior essential for survival, such as hunger, thirst, and avoidance of pain.