Question

| Explain the
I utility with
schedule ?
law of diminishing marsin
numerica and graphical

Answer 1

When a positive externality on consumption is present in a market, the government can actually increase the value that the market creates for society by providing a subsidy equal to the benefit of the externality. (Such subsidies are sometimes referred to as Pigouvian subsidies or corrective subsidies.)

Answer 2

Answer:

When a positive externality on consumption is present in a market, the government can actually increase the value that the market creates for society by providing a subsidy equal to the benefit of the externality. (Such subsidies are sometimes referred to as Pigouvian subsidies or corrective subsidies.)

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