When the production or consumption of a good creates a positive externality, it is deemed a market failure because at the market quantity
A.
the marginal social benefit exceeds the marginal social cost.
B.
the marginal social cost exceeds the marginal social benefit.
C.
society produces too much of the good.
D.
the private benefits from consuming the good exceed the social benefits.
E.
a surplus of the good always exists without government intervention.
Exam No： AP Micro Practice Test 4 Year：2024 Question No：11
Answer:
A
Knowledge points:
6.1 Socially Efficient and Inefficient Market Outcomes
6.2 Externalities
Solution:
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