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VARVARA [1.3K]
2 years ago
12

In a market with positive​ externalities, A. the efficient level of production is less than what competition will obtain. B. the

efficient level of production is equal to what competition will obtain. C. there cannot be an efficient level of production. D. the efficient level of production is more than what competition will obtain.
Business
1 answer:
Jlenok [28]2 years ago
7 0

Answer:

A. the efficient level of production is less than what competition will obtain. B. the efficient level of produ

Explanation:

An activity has a positive externality if if the benefit of the activity exceeds the cost of the activity to third parties.

Education and research and development usually generate positive externality.

Activities that generate positive externality are usually under produced in the economy due to the high cost of production.

The government can encourage production of activity that generates positive externality by giving subsidy.

I hope my answer helps you

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