In a Market with Positive Externalities

question 103

Multiple Choice

In a market with positive externalities,

• A) the efficient level of production is less than what competition will obtain.
• B) the efficient level of production is equal to what competition will obtain.
• C) the efficient level of production is more than what competition will obtain.
• D) there cannot be an efficient level of production.

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Definitions:

Affect

The experience of feeling or emotion that is often a response to stimuli in the environment.

Sensorimotor Stage

The sensorimotor stage is the first of Piaget's stages of cognitive development, where infants explore the world through their senses and actions (birth to about 2 years).

Piaget

Jean Piaget, a Swiss psychologist known for his pioneering work in child development, particularly his theory of cognitive development.

Development

The process of growth and change that a living organism undergoes over time, marked by biological, emotional, physical, and cognitive transformations.