Consider a market in which a positive production externality is present. Which of the following statements is true? Select one: O A If the government does not intervene, no deadweight loss is generated. O B. None of the other answers. O. The marginal social cost is greater than the marginal cost faced by the producer at the market equilibrium. O D. The socially efficient quantity is less than the market equilibrium quantity. O E The consumers of the good take into account all of the benefits of the good being produced and consumed.

Consider a market in which a positive production externality is present. Which of the following statements is true? Select one: O A If the government does not intervene, no deadweight loss is generated. O B. None of the other answers. O. The marginal social cost is greater than the marginal cost faced by the producer at the market equilibrium. O D. The socially efficient quantity is less than the market equilibrium quantity. O E The consumers of the good take into account all of the benefits of the good being produced and consumed.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter10: Externalities

Section: Chapter Questions

Problem 2PA

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