Question

Which of the following is true if the production of a good gives rise to a positive externality? The demand curve for the good shifts to the right in the presence of positive externalities. The marginal social benefit from each level of output exceeds the consumers' willingness to pay. The marginal private benefit from production exceeds the marginal social benefit. The demand curve for the good shifts to the left in the presence of positive externalities.

Answer 1

Which of the following is true if the production of a good gives rise to a positive externality?

The demand curve for the good shifts to the right in the presence of positive externalities.

Step-by-step explanation: