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

question 24

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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.


Definitions:

Synchronous

Occurring at the same time or rate; in synchronization.

Fibrous

Composed of or characterized by fibres, especially in the context of connective tissues.

Elastic

A property of materials that can return to their original shape after being stretched or compressed.

Syndesmosis

A type of fibrous joint in which two bones are joined together by a ligament or a membrane, allowing for minimal movement, such as the distal tibiofibular joint.

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