If a good produces a positive externality and the government does not correct it, the equilibrium market quantity is ________ than the socially optimal quantity and the equilibrium market price is than the socially optimal price.
A)higher; higher .
B)lower; lower .
C)lower; higher .
D)higher; lower

Question

Quizplus · Accepted Answer

The Answer of If a good produces a positive externality and the government does not correct it, the equilibrium market quantity is ________ than the socially optimal quantity and the equilibrium market price is than the socially optimal price.
A)higher; higher .
B)lower; lower .
C)lower; higher .
D)higher; lower

If a Good Produces a Positive Externality and the Government