When Products That Create Positive Externalities Are Produced, at the Market

question 24

True/False

When products that create positive externalities are produced, at the market equilibrium output, the social benefit generated by consuming the product exceeds the private benefit.

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Definitions:

Mycorrhizal Relationship

A symbiotic association between a fungus and the roots of a vascular plant, benefiting both organisms, often by enhancing nutrient uptake.

Fungicide

Chemical compounds or biological organisms used to kill or inhibit fungi or fungal spores.

Nitrogen Gas

An inert diatomic gas that constitutes about 78% of the Earth's atmosphere, used in a variety of industrial and scientific applications.

Water Supply

The provision or availability of water for various uses, including drinking, irrigation, and industrial needs, through natural or artificial means.