Economics 9708 · AS & A Level · 7.4

7.4 — practice question

What outcome, from society’s perspective, occurs if the market price of a product fails to take account of the positive externalities created in producing it?

  • Atoo little consumption and too little production
  • Btoo little consumption and too much production
  • Ctoo much consumption and too little production
  • Dtoo much consumption and too much production

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