When a positive externality is present in a market, total surplus is:
A. higher when buyers receive a Pigouvian subsidy for the externality.
B. lower when buyers receive a Pigouvian subsidy for the externality.
C. higher when buyers only consider private benefits.
D. Any of these statements could be true.
A. higher when buyers receive a Pigouvian subsidy for the externality.
Economics
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Explain the meaning of IMF conditionality and why it has been criticized
What will be an ideal response?
Economics
Refer to the diagram. Line (1) reflects a situation where resource prices:
A. decline as industry output expands.
B. increase as industry output expands.
C. remain constant as industry output expands.
D. are unaffected by the level of output in the industry.
Economics