When a Market Experiences a Positive Externality,what Can Be Said

question 52

Multiple Choice

When a market experiences a positive externality,what can be said

• A)The demand curve does not reflect the value to society of the good.
• B)Too much of the good is being produced.
• C)The government can internalize the externality by imposing a tax on the product.
• D)The private value is greater than the social value.

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Definitions:

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