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MMLU / If there is a positive externality associated with the production of a private…

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

If there is a positive externality associated with the production of a private good, which of the following is an action of government that would most likely move the market to an efficient outcome?

choices

  1. Close the firm producing the good.
  2. Subsidize the firm or its customers.
  3. Tax the firm.
  4. Appoint a commission.

subject

high_school_microeconomics

Discussion

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Source and history

Official source

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