If a good that generates positive externalities is priced to internalize the externality, then its price will -1--------- and its output will-2-----------.

1. a. decrease
b. remain constant
c. increase
2. a. decrease
b. remain constant
c. increase

Respuesta :

Answer:increase and output will fall

Explanation:

If the price of an item that creates positive externalities is set to internalize the positive externalities, the cost will increase and the production will fall.

When a third - party service benefits from someone else's output, this is known as positive output externalities. When a transaction cannot be penalized for getting such advantages, a problem develops.

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