Question
Can you summarize the relationship between the competitive market equilibrium quantity and the socially efficient price when there is a positive externality in the market?
Can you summarize the relationship between the competitive market equilibrium quantity and the socially efficient price when there is a positive externality in the market?
A) The socially efficient equilibrium quantity is greater than the competitive market equilibrium quantity.
B) The socially efficient equilibrium quantity is less than the competitive market equilibrium quantity.
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Macroeconomics A European Perspective
Authors: Olivier Blanchard, Alessia Amighini, Francesco Giavazzi
4th Edition
1292360895, 9781292360898
