Economics 9708 · AS & A Level · 7.4

7.4 — practice question

If consumption creates positive externalities, what conclusion can be drawn about market output?

  • AOutput must be above the allocative efficient level.
  • BOutput must be at the allocative efficient level.
  • COutput must be below the allocative efficient level.
  • DOutput can be above or below the allocative efficient level.

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