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andre [41]
3 years ago
5

The private consumption of services that generate positive externalities, such as getting a college education, is usually _____

the socially optimal level of consumption.
Business
1 answer:
Naily [24]3 years ago
5 0

Answer:

<em>Less than</em>

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, <em>and it is usually </em><u><em>less than</em></u><em> the socially optimal level regarding the consumption. </em>

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

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