Question

multiple choice question the result of positive externalities is that the market produces too ____ units of a product that could benefit society, resulting in producers ____ resources to that product. few; underallocating many; overallocating few; overallocating many; underallocating

Explanation:

Positive externalities occur when the consumption or production of a good benefits a third - party not involved in the transaction. In the case of positive externalities, the market fails to account for the full social benefits. As a result, the market produces too few units of the product that could benefit society, and producers underallocate resources to that product.

Answer:

A. few; underallocating