Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Can you explain this for me? What is the correct answer and why? If you can show it in a graph that would also be great. Thank you!

Transcribed Image Text:Private markets fail to reach a socially optimal level when positive externalities are present because
social value exceeds private value at the private market solution
private costs exceed social benefit at the private market solution
private costs exceed private benefits at the private market solution
private benefit equals social benefit at the private market solution
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