If a market generates a positive externality, the social value curve is above the demand curve (private value curve).

Name: If a market generates a positive externality, the social value curve is above the demand curve (private value curve).
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Quizplus · Accepted Answer

This is because the social value includes both the private value and the positive externality. Therefore, the social value curve is higher than the demand curve (private value curve).

If a Market Generates a Positive Externality, the Social Value