308EconomicsMedium
A positive externality occurs when?
AThe social marginal benefits are higher than the private marginal benefits
BThe social marginal cost equal the social marginal benefit
CThe social marginal costs are higher than the private marginals costs
DA product is not provided in the free market
Correct answer
C. The social marginal costs are higher than the private marginals costs
Explanation
The correct answer is The social marginal costs are higher than the private marginals costs.