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trea48 trea48
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A week ago

Medical research that results in a cure for a serious disease produces positive externalities. What is the impact of this positive externality on economic efficiency?



At equilibrium, more than the economically efficient quantity of medical research is produced.



At equilibrium, less than the economically efficient quantity of medical research is produced.



A deadweight loss occurs because at equilibrium the marginal social cost equals the marginal social benefit.



A deadweight loss occurs because at equilibrium the marginal social cost of medical research is greater than the marginal social benefit.

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Mtoney9Mtoney9
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A week ago
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At equilibrium, less than the economically efficient quantity of medical research is produced.

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