Which of the Following Describes How a Positive Externality Affects

question 132

Multiple Choice

Which of the following describes how a positive externality affects a competitive market?

• A)The externality causes a difference between the private benefit from consumption and the social benefit.
• B)The externality causes a difference between the private benefit from production and the social cost of production.
• C)The externality causes quantity demanded to exceed quantity supplied.
• D)The externality causes a difference between the social cost of production and the social cost of consumption.

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Definitions:

Distance

The measurement of the space between two points.

Decimal

A numerical value that uses a decimal point to indicate a fraction of a base-10 number.

Y-axis

The vertical axis in a two-dimensional graph, typically used to represent the range or dependent variable in a function or data set.

X-axis

The horizontal axis in a coordinate plane, typically used as a reference line for measuring distances along the horizontal direction.