University researchers create a positive externality because what they discover in their research labs can easily be learned by others who haven't contributed to the research costs. If there are no subsidies, what is the relationship between the equilibrium quantity of university research and the optimal quantity of university research produced? O The equilibrium quantity is greater than the socially optimal quantity O There is not enough information to answer this question O The equilibrium quantity is less than the socially optimal quantity O They are equal
University researchers create a positive externality because what they discover in their research labs can easily be learned by others who haven't contributed to the research costs. If there are no subsidies, what is the relationship between the equilibrium quantity of university research and the optimal quantity of university research produced? O The equilibrium quantity is greater than the socially optimal quantity O There is not enough information to answer this question O The equilibrium quantity is less than the socially optimal quantity O They are equal
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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