If Positive Externalities Are Present in the Production of a Good

If positive externalities are present in the production of a good, then society will:

A) ​produce too much of the good since the marginal private benefit to consumers is less than the marginal social benefit.
B) ​produce too little of the good since the marginal private benefit to consumers is greater than the marginal social benefit.
C) ​produce too much of the good since the marginal private benefit to consumers is greater than the marginal social benefit.
D) ​produce too little of the good since the marginal private benefit to consumers is less than the marginal social benefit.

Correct Answer:

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