34. Suppose flowering plants generate a positive externality in consumption. if

Question

34. Suppose flowering plants generate a positive externality in consumption. if so, then

Suppose flowering plants generate a positive externality in consumption. If so, then 0 0 0 0 O A. the private market equilibrium results in a quantity of zero. B. the private market equilibrium results in a quantity that is greater than the efficient quantity. C. the private market equilibrium results in a price that is equal to the efficient price. O D. the private market equilibrium results in a quantity that is less than the efficient quantity. O E. the private market equilibrium results in a quantity that is greater than the equilibrium price.

Explanation / Answer

Answer
Option D
the private market will produce only up to it get profit so the quantity is lower than the efficient quantity which force government to intervene and provide the subsidy to produce socially efficient output.

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.