Economics 9708 · AS & A Level · 7.4

7.4 — practice question

A positive externality may exist when

  • Aconsumers are not the best judges of the future benefits from consuming a product.
  • Bgroups of consumers act together to negotiate a discount on the sale of a product.
  • Cproducers use a government scheme to clear waste from their offices at no cost to themselves.
  • Dsocial costs of production exceed private costs of production.

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