Question

Given a positive externality, the marginal social benefits curve lies to the of the demand curve, with the market output the socially optimal output. a. right; less than b. left; greater than c. left; less than d. right; greater than

          Given a positive externality, the marginal social benefits curve lies to the ____ of the demand curve, with the market output ____ the socially optimal output.
a. right; less than
b. left; greater than
c. left; less than
d. right; greater than

Given a positive externality, the marginal social benefits curve lies to the of the demand curve, with the market output the socially optimal output.
a. right; less than
b. left; greater than
c. left; less than
d. right; greater than

Added by Christy W.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Akash M

10/27/2023

Step 1

This is because the MSB curve takes into account the additional benefits to society that are not reflected in the private demand curve. Show more…

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Check My Work Given a positive externality, the marginal social benefits curve lies to the: a. right; less than b. left; greater than c. left; less than d. right; greater than Check My Work Given a positive externality, the marginal social benefits curve lies to the: a. right; less than b. left; greater than c. left; less than d. right; greater than of the demand curve, with the market output being less than the socially optimal output.