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If an entrepreneur opens an adult day care center that produces positive externalities, the equilibrium quantity of day care that is produced will be

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User Fatso
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the equilibrium quantity of day care that is produced will be: lower than socially optimal.
Positive externalities under this circumstances refers to the third-party that would be benefited from a certain economic transaction. In adult-day care, the third party is benefited because the people who use the services are not the one that who actually pay for the service
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User Michael Ortiz
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