In a market with positive externalities, the market equilibrium quantity maximizes the welfare of society as a whole.

Name: In a market with positive externalities, the market equilibrium quantity maximizes the welfare of society as a whole.
Brand: Quizplus
Rating: 4.9 (33 reviews)

Question

Quizplus · Accepted Answer

In a market with positive externalities, the market equilibrium quantity is less than the socially optimal quantity, meaning it does not maximize the welfare of society as a whole. Positive externalities lead to underproduction in the market.

In a Market with Positive Externalities, the Market Equilibrium Quantity