The Greater the Magnitude of the External Benefits of Production

question 86

Multiple Choice

The greater the magnitude of the external benefits of production,

• A)​The larger is the deadweight loss from underproduction.
• B)​The greater would be the optimal subsidy.
• C)​The further the private market solution ignoring those benefits would deviate from the socially efficient level of output.
• D)​All of the above are true

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