If the Production of Oranges Generates an External Benefit, Then

question 67

Multiple Choice

If the production of oranges generates an external benefit, then we would expect the market equilibrium quantity of oranges to be:

• A)equal to the socially optimal quantity.
• B)less than the socially optimal quantity.
• C)greater than the socially optimal quantity.
• D)equal to the socially optimal quantity plus the external benefit.