Consider a Setting in Which There Is a Positive Externality,but

question 28

Multiple Choice

Consider a setting in which there is a positive externality,but no negative externality.The market outcome is __________________; government can bring about the ___________________ outcome if it sets a subsidy equal to the __________________.

• A) inefficient; efficient; MEB
• B) inefficient; efficient; MEC
• C) efficient; inefficient; MPC
• D) inefficient; efficient; MPB
• E) inefficient; efficient; MSB

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