In the presence of positive externalities, a free market will ...

[jhjkgdfhk]

In the presence of positive externalities, a free market will choose a price which is too ____ and produce an output which is too ____ compared with the social optimum.
 a. high; low
  b. low; low
  c. high; high
  d. low; high
  e. marginal; inequitable

Question 2

The government would use production taxes to remedy the problem of substantial:
 a. internal benefits of production.
  b. external benefits of production.
  c. external costs of production.
  d. external benefits of consumption
  e. external costs of consumption.

[randomguy133]

Answer to Question 1

b

Answer to Question 2

c