Answered step by step
Verified Expert Solution
Question
1 Approved Answer
What makes an externality positive rather than negative? a.The externality benefits third parties rather than harming them. b.The deadweight loss is greater than zero, not
What makes an externality positive rather than negative?
a.The externality benefits third parties rather than harming them.
b.The deadweight loss is greater than zero, not less.
c.The socially optimal quantity exchanged is less, not greater, than at market equilibrium.
d.The externality affects the demand curve rather than the supply curve.
e.The externality becomes internalized without government action.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started