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12 June, 00:14

If an entrepreneur opens an adult day care center that produces positive externalities, the equilibrium quantity of day care that is produced will be

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  1. 12 June, 00:39
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    the equilibrium quantity of day care that is produced will be: lower than socially optimal.

    Positive externalities under this circumstances refers to the third-party that would be benefited from a certain economic transaction. In adult-day care, the third party is benefited because the people who use the services are not the one that who actually pay for the service
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