A Positive Externality (That Has Not Been Internalised) Causes the

question 13

Multiple Choice

A positive externality (that has not been internalised) causes the

• A) equilibrium quantity to exceed the optimal quantity.
• B) equilibrium quantity to equal the optimal quantity.
• C) optimal quantity to exceed the equilibrium quantity.
• D) equilibrium quantity to be either above or below the optimal quantity.

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