Suppose the external benefit is $10 per extinguisher. True or False: The government could achieve the efficient outcome by giving out fire extinguishers for free using tax revenue. True

false

Explanation:

A good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.

The efficient outcome can be achieved by subsiding the extinguisher for $10.

answer; ///i believe the correct two answer are (1) paid in capital; and (2) earned   capital; good luck

enjoy the dunce cap fool