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:

Drive To Acquire

The innate or learned inclination to seek out and obtain possessions or attributes deemed valuable or necessary.

Drive To Bond

An innate human drive to form connections and relationships with others.

E-to-P Expectancy

The belief that one's effort (E) will lead to a particular level of performance (P).

Self-confidence

The belief in one's abilities, qualities, and judgment, contributing to an individual's self-assuredness and ability to face challenges.