When Positive Externalities Exist, the Private Market Equilibrium Represents a

question 2

Multiple Choice

When positive externalities exist, the private market equilibrium represents a

• A) market price which is too low and a market quantity which is too low.
• B) market price which is too low and a market quantity which is too high.
• C) market price which is too high and a market quantity which is too low.
• D) market price which is too high and a market quantity which is too high.

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