Which of the Following Statements Is False

question 80

Multiple Choice

Which of the following statements is false ?

• A)If a negative externality exists, the market output is greater than the socially optimal output.
• B)If a positive externality exists, the market output is less than the socially optimal output.
• C)If there are no external costs or benefits, then it follows that marginal private costs equal marginal social costs and marginal private benefits equal marginal social benefits.
• D)When a positive externality exists, marginal social benefits are greater than marginal private benefits.

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