Question 16 3 pts When there is a positive externality, the unregulated market results in a level of output that is ______ than the socially efficient level because the private benefits are ______ than the social benefits. higher; greater higher; less lower; greater lower; less
Added by Claudia B.
Close
Step 1
A positive externality occurs when the production or consumption of a good or service creates benefits for third parties who are not directly involved in the transaction. For example, when a company installs solar panels and reduces carbon emissions, it benefits Show more…
Show all steps
Your feedback will help us improve your experience
Jennifer Stoner and 69 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
When a negative externality exists in a market, the marginal social cost curve is __________________ and lies _______________
Haricharan G.
If a good generates a positive externality and the government makes adjustments, then the equilibrium quantity is_______ the socially maximum quantity, and the equilibrium price is________ the social maximum price.
In case of a negative externality, how would the equilibrium price and output in the market compare to the socially optimal price and output? A. Higher; less than B. Lower; less than C. Higher; more than D. Lower; more than
Rachel G.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD