When the consumption of a particular good creates a positive externality...

Select one:

a.

The marginal private benefit is greater than marginal social benefit. The level of consumption is more than the socially optimal level of consumption

b.

The good will be under-consumed. Society could be made better off if the government subsidised consumption.

c.

The good will be over-consumed. Society could be made better off if the government taxed consumption.

d.

The marginal social cost is greater than marginal private cost.The level of production is greater than the socially optimal level of production