Economics · Externalities
A positive externality occurs when:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1marginal social benefit is zero.
- 2marginal social benefit is greater than marginal private benefit.✓
- 3marginal social benefit is less than average social benefit.
- 4marginal social benefit is equal to marginal private benefit.
Correct answer
marginal social benefit is greater than marginal private benefit.
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