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Furkat [3]
3 years ago
13

The greater the magnitude of the external benefits of production, a. ​ The larger is the deadweight loss from underproduction. b

. ​ The greater would be the optimal tax. c. ​ The less the private market solution would deviate from the socially efficient level of output. d. ​ All of the above are true.
Business
1 answer:
Naddika [18.5K]3 years ago
7 0

Answer:

d. ​ All of the above are true

Explanation:

External costs happen if during production or consumption of a good or a service there is a negative effect on another party. The existence of this can bring about market failure. In the presence of externalities social benefit costs are a combination of private costs and also external benefits of production.

All of the options a, n and c are true so d is the answer here.

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