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AP Microeconomics
Unit 6 – Market Failure and the Role of Government
Topic 6.2
The consumption of good Z creates positive externalities, but there are no externalities in producing good Z. What must be true at the market equilibrium for good Z if the market is not regulated?
Marginal private benefit is greater than marginal social benefit
Marginal social benefit equals marginal social cost
Marginal social cost is greater than marginal private cost
Marginal social benefit is greater than marginal social cost
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AP Microeconomics - 6.2 Externalities
Key terms
Market Equilibrium
Not Regulated
Positive Externalities
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About Fiveable
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Resources
Cram Mode
AP Score Calculators
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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