University Researchers Create a Positive Externality Because What They Discover

question 372

Multiple Choice

University researchers create a positive externality because what they discover in their research labs can easily be learned by others who haven't contributed to the research costs. Suppose that the federal government gives grants to these researchers equal to the their per-unit production externality. What is the relationship between the equilibrium quantity of university research and the socially optimal quantity of university research produced?

• A)The equilibrium quantity is greater than the socially optimal quantity.
• B)They are equal.
• C)The equilibrium quantity is less than the socially optimal quantity.
• D)There is not enough information to answer the question.

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Definitions:

Data Collection

The process of gathering and measuring information on variables of interest, in a systematic fashion that enables one to answer stated research questions, test hypotheses, and evaluate outcomes.

Difficulty Connecting

Refers to the challenges or obstacles faced while attempting to establish a communication or operational link between systems, networks, or devices.

WAN

A Wide Area Network, a telecommunications network that extends over a large geographic area for the purpose of computer networking.

MAN

Metropolitan Area Network (MAN) is a large computer network that spans a metropolitan area, typically interconnecting businesses, organizations, and government entities within a city.