Question

In a market with positive​ externalities, A. there cannot be an efficient level of production. B. the efficient level of production is less than what competition will obtain. C. the efficient level of production is more than what competition will obtain. D. the efficient level of production is equal to what competition will obtain.

Answer 1

Answer: In a market with positive​ externalities, "C. the efficient level of production is more than what competition will obtain.".

Explanation: An externality is a situation in which the costs or benefits of production or consumption of some good or service are not reflected in its market price. A positive externality is the positive effect of an activity imposed by an unrelated third party.