Q
A positive externality occurs when ?
-
A
A. The social marginal costs are higher than the private marginals costs
-
B
B. A product is not provided in the free market
-
C
C. The social marginal cost equal the social marginal benefit
-
D
D. The social marginal benefits are higher than the private marginal benefits
Correct Answer:
A. A. The social marginal costs are higher than the private marginals costs
