External Benefits In the case of external benefits, the market will under-provide the good relative to the socially optimal amount.
{"Image DocumentName": "External BenefitsIn the case of external benefits, the market will under-provide the good relative to the socially optimal amount.", "Image ImageDescription": "I.E. at Q MKT MSB > MSC. How can this inefficiency be corrected? Recall the solution to negative externality was a tax\u2026 We should subsidize the positive externality generating activity.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}