Solved

If the Production of a Good Generates a Positive Externality

Question 1

Multiple Choice

If the production of a good generates a positive externality, then:


A) production of the good is harmful.
B) there will be deadweight loss at the market equilibrium quantity.
C) total economic surplus will be maximized at the market equilibrium quantity.
D) the government should tax producers of the good.

Correct Answer:

verifed

Verified

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents