Question

When an unregulated positive externality exists, the marginal social cost is less than the marginal social benefit, and the equilibrium quantity is less than the socially optimal quantity.

Name: When an unregulated positive externality exists, the marginal social cost is less than the marginal social benefit, and the equilibrium quantity is less than the socially optimal quantity.
Uploaded: 2022-05-29T11:15:25-08:00
Duration: 1 min 53 s
Channel: Haricharan Gupta
Description: When an unregulated positive externality exists, the marginal social cost is less than the marginal social benefit, and the equilibrium quantity is less than the socially optimal quantity.

          When an unregulated positive externality exists, the marginal social cost is less than the marginal social benefit, and the equilibrium quantity is less than the socially optimal quantity.

When an unregulated positive externality exists, the marginal social cost is less than the marginal social benefit, and the equilibrium quantity is less than the socially optimal quantity.

Added by Matthew L.

Principles of Economics

Gregory Mankiw 8th Edition

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Solved by Expert Haricharan Gupta

05/29/2022

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This leads to a situation where the marginal social benefit is greater than the marginal private benefit. Show more…

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When an unregulated positive externality exists, the marginal social cost is the marginal social benefit, and the equilibrium quantity is the socially optimal quantity. When an unregulated positive externality exists, the marginal social cost is less than the marginal social benefit, and the equilibrium quantity is less than the socially optimal quantity. Recordings