In Markets with Positive Externalities,_____

question 157

Multiple Choice

In markets with positive externalities,_____

• A)the marginal social benefit from the good is less than the marginal social cost.
• B)the average social benefit is less than the average social cost.
• C)the property rights on the good have been well defined.
• D)private marginal benefits result in a quantity of the good that is less than socially optimal.
• E)private marginal benefits result in a quantity of the good that is more than socially optimal.

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Definitions:

Rules Of Exponents

Fundamental principles used to simplify expressions involving powers of the same base, including multiplication, division, and power of power rules.

Expression

A combination of symbols that represents a quantity or a relationship between quantities.

Y

In Cartesian coordinates, the vertical axis or the value that represents vertical position.

Expression

A combination of symbols and operators in mathematics that represents a specific value.