Answered: When external benefits are significant:…

When external benefits are significant: market output is too low. social surplus is maximized. market output is too high. market output is at the efficient level.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter14: Environmental Economics

Section: Chapter Questions

Problem 18SQ

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Question

When external benefits are significant:

	market output is too low.
	social surplus is maximized.
	market output is too high.
	market output is at the efficient level.

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