Answer:
A. the efficient level of production is less than what competition will obtain. B. the efficient level of produ
Explanation:
An activity has a positive externality if if the benefit of the activity exceeds the cost of the activity to third parties.
Education and research and development usually generate positive externality.
Activities that generate positive externality are usually under produced in the economy due to the high cost of production.
The government can encourage production of activity that generates positive externality by giving subsidy.
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