Market failure and externalities

Which of the following correctly describes a positive externality of consumption?

Marginal Social Benefit is equal to Marginal Private Benefit ( $M S B = M P B$ )

Marginal Social Benefit exceeds Marginal Private Benefit ( $M S B > M P B$ )

Marginal Social Cost exceeds Marginal Private Cost ( $M S C > M P C$ )

Marginal Private Cost exceeds Marginal Social Cost ( $M P C > M S C$ )

Which of the following correctly describes a positive externality of consumption?

Marginal Social Benefit is equal to Marginal Private Benefit ( $M S B = M P B$ )

Marginal Social Benefit exceeds Marginal Private Benefit ( $M S B > M P B$ )

Marginal Social Cost exceeds Marginal Private Cost ( $M S C > M P C$ )

Marginal Private Cost exceeds Marginal Social Cost ( $M P C > M S C$ )

Market failure and externalities Questions