When a positive externality is present in a market, consumers will purchase _______ the socially optimal quantity.
A)more than
B)the same amount as
C)zero, unlike
D)less than

Question

Quizplus · Accepted Answer

When a positive externality is present, the private benefits to consumers are less than the total benefits to society, leading to consumption below the socially optimal level.

When a Positive Externality Is Present in a Market, Consumers