Business, 08.04.2020 00:53, pierreangie17

Positive Externalities Exercise 2 a. Which of the following situations exhibits a positive externality? Alan purchases a new watch as a gift for his father. Sean spends the afternoon cleaning his garage. Richard renovates a dilapidated historic home in the center of town. b. When there is a positive externality associated with the market: too little is produced. too much is produced. the socially optimal amount is produced. c. Governments may stimulate the economy to move toward the socially optimal output by: taxing the product. subsidizing the product. implementing a price ceiling.

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Positive Externalities Exercise 2 a. Which of the following situations exhibits a positive externali...