In the case of an external benefit generated by an activity, such as education, a private subsidy for that activity can achieve an efficient outcome.

Name: In the case of an external benefit generated by an activity, such as education, a private subsidy for that activity can achieve an efficient outcome.
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Quizplus · Accepted Answer

A private subsidy can help internalize the external benefit, aligning private incentives with social benefits, leading to a more efficient allocation of resources.

In the Case of an External Benefit Generated by an Activity