A positive consumption externality will cause a private market to produce:
A)less than is socially desirable
B)more than is socially desirable
C)more than is market optimal
D)less than is market optimal

Question

Quizplus · Accepted Answer

Positive consumption externalities lead to a situation where the private market produces less than is socially desirable because the full social benefits of consumption are not taken into account by the private market.

A Positive Consumption Externality Will Cause a Private Market to Produce