When positive externalities are present in a market, it means that:
A. private benefits are less than social benefits.
B. private benefits are less than external benefits.
C. social benefits are less than external benefits.
D. external benefits are equal to social benefits.
A. private benefits are less than social benefits.
You might also like to view...
A price floor is binding when it is set
a. above the equilibrium price, causing a shortage. b. above the equilibrium price, causing a surplus. c. below the equilibrium price, causing a shortage. d. below the equilibrium price, causing a surplus.
A monopolist can earn economic profits in the long run because
A) a monopoly is by definition large, and this gives it the ability to make large profits. B) a monopoly makes the good or service better than anyone else. C) barriers to entry prevent new firms from entering the industry. D) monopolies can legally force people to buy their products and to pay more for them than they are worth.