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AP Microeconomics
Unit 6 – Market Failure and the Role of Government
Topic 6.2
What happens to the socially optimal quantity when a per-unit subsidy is provided for a good with a positive externality?
The socially optimal quantity decreases.
The socially optimal quantity becomes inefficient.
The socially optimal quantity remains the same.
The socially optimal quantity increases.
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AP Microeconomics - 6.2 Externalities
Key terms
Per-Unit Subsidy
Positive Externality
Socially Optimal Quantity
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Resources
Cram Mode
AP Score Calculators
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Crisis Text Line
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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