If a positive demand-side externality (also called a positive externality in consumption) occurs, then: a. The market provides the efficient allocation. b. The market under-provides the product, meaning the market allocation is less than the efficient allocation. c. The market does not provided the product, hence market failure occurs. d. The market over-provides the p
If a positive demand-side externality (also called a positive externality in consumption) occurs, then: a. The market provides the efficient allocation. b. The market under-provides the product, meaning the market allocation is less than the efficient allocation. c. The market does not provided the product, hence market failure occurs. d. The market over-provides the p
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter11: Public Goods And Common Resources
Section: Chapter Questions
Problem 2PA
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If a positive demand-side externality (also called a positive externality in consumption) occurs, then:
a. The market provides the efficient allocation.
b. The market under-provides the product, meaning the market allocation is less than the efficient allocation.
c. The market does not provided the product, hence market failure occurs.
d. The market over-provides the product, meaning the market allocation is more than the efficient allocation.
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