Markets are inefficient when positive production externalities are present because:
A)private benefits of consumption exceed social benefits of consumption when the market is in equilibrium
B)social costs of production exceed private costs of production when the market is in equilibrium
C)social benefits of consumption exceed private benefits of consumption when the market is in equilibrium
D)private costs of production exceed social costs of production when the market is in equilibrium

Question

Quizplus · Accepted Answer

The Answer of Markets are inefficient when positive production externalities are present because:
A)private benefits of consumption exceed social benefits of consumption when the market is in equilibrium
B)social costs of production exceed private costs of production when the market is in equilibrium
C)social benefits of consumption exceed private benefits of consumption when the market is in equilibrium
D)private costs of production exceed social costs of production when the market is in equilibrium

Markets Are Inefficient When Positive Production Externalities Are Present Because