In markets where a positive externality is involved we expect: Select one: a. Inefficient overproduction of...

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In markets where a positive externality is involved we expect: Select one: a. Inefficient overproduction of the good O b. Tax

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Answer 1

Answer #1

With positive externality, the goods are underproduced which is inefficient as the market is subsidized to produce more.

option(C)

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Answer 2

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