If a Market Is Characterized by a Positive Externality That

question 95

Multiple Choice

If a market is characterized by a positive externality that is not the result of a technology spillover,

• A)the socially optimal level of output is less than the equilibrium level of output, and the optimal price is greater than the equilibrium price.
• B)the socially optimal level of output is greater than the equilibrium level of output, and the socially optimal price is less than the equilibrium price.
• C)the socially optimal level of output is greater than the equilibrium level of output, and the socially optimal price is greater than the equilibrium price.
• D)the socially optimal level of output is less than the equilibrium level of output, and the socially optimal price is less than the equilibrium price.

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Definitions:

Probability

A mathematical measure of the likelihood that an event will occur, expressed as a number between 0 and 1.

Television Sets

Appliances designed for the reception and display of broadcast signals, consisting of a screen and tuners.

Probability

The likelihood of something happening or being the case, quantified as a ratio or percentage.

Canadian Households

Refers to living arrangements and domestic units within Canada, encompassing all people who occupy a housing unit.