-In the above figure,market equilibrium at point E yields the quantity X.The quantity is the socially optimal quantity.Point E indicates that currently there is
A) a negative externality.
B) a positive externality.
C) a public good.
D) a positive externality with subsidy.
Correct Answer:
Verified
Q101: Q103: Q106: Inoculations of children against infectious diseases are Q107: "Second-hand" smoke, an often cited disadvantage of Q107: The government corrects for externalities in all Q111: If external benefits are taken into account Q112: When there is an external benefit, the Q114: Positive externalities arise when Q115: An externality is Q118: When there is an external cost, the
A)
A) an unprofitable firm
A) a third-party benefit or
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