Question
True, False, Uncertain A) If there is a positive demand-side externality, then the socially optimal equilibrium has a higher price and quantity (relative to the
True, False, Uncertain
A) If there is a positive demand-side externality, then the socially optimal equilibrium has a higher price and quantity (relative to the free-market equilibrium).
B) If a market is made for the damages/benefits caused by an externality, the market failure caused by the externality is abolished.
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Macroeconomics
Authors: Charles I. Jones
3rd edition
978-0393123944, 393123944, 393923908, 978-0393923902
