in-a-market-with-positive-externalities-how-does-the-marginal-social-benefit-cur

Question

In a market with positive externalities, how does the marginal social benefit curve affect the equilibrium quantity compared to the traditional demand curve?

Accepted Answer

The equilibrium quantity is higher when considering the marginal social benefit curve.

Answer

The equilibrium quantity is irrelevant in this context.

Answer

The equilibrium quantity is lower when considering the marginal social benefit curve.

Answer

The equilibrium quantity remains unchanged.