Which of the following is true of markets characterized by positive externalities?
A)Social value exceeds private value, and market quantity exceeds the socially optimal quantity.
B)Social value is less than private value, and market quantity exceeds the socially optimal quantity.
C)Social value exceeds private value, and market quantity is less than the socially optimal quantity.
D)Social value seldom exceeds private value; therefore, social quantity is less than private quantity.

Question

Quizplus · Accepted Answer

In markets with positive externalities, the social value of a good or service exceeds the private value, leading to a market quantity that is less than the socially optimal quantity.

Which of the Following Is True of Markets Characterized by Positive