Why Do Private Markets Fail to Reach a Socially Optimal

question 149

Multiple Choice

Why do private markets fail to reach a socially optimal level when positive externalities are present

• A)Private benefit equals social benefit at the private market solution.
• B)Private costs exceed private benefits at the private market solution.
• C)Social value exceeds private value at the private market solution.
• D)Private costs exceed social benefit at the private market solution.