Question

The private consumption of services that generate positive externalities, such as getting a college education, is usually _____ the socially optimal level of consumption.

Answer 1

Answer:

Less than

Explanation:

The services which are privately consumed that generates benefit to the third party that is also known as the Positive Externality.  

For the example, the college education, it is basically a private or personal benefit for the one who is studying and getting the private benefit as its education, and it is usually less than the socially optimal level regarding the consumption.

Because the socially optimal level is the point where MSB (that is the marginal social benefit) intersects MSC (that is the marginal social cost).