- Question 28 Suppose The Market For Good X Imposes A Positive Externality On Individuals Not Directly Involved In The D 1 (264.13 KiB) Viewed 28 times
Question 28 Suppose the market for “Good X” imposes a positive externality on individuals not directly involved in the demand or supply side of the market. If this externality is ignored in establishing a short-run equilibrium in the market for X, then efficiency will be affected by the fact that: O too little X is produced. O too much X is produced. O the market price for X is too high. o the marginal social cost of producing X is not brought to bear. o the government has failed to impose a per-unit tax on the market for X.