.When there are positive externalities in consumption, what can be concluded about the output of the market?
A. Output must be above the allocative efficient level.
B. Output must be at the allocative efficient level.
C. Output must be below the allocative efficient level.
D. Output can be above or below the allocative efficient level.
Why might a firm continue in production in the short run even though the price of its product has fallen below its average total costs of production?
It anticipates a rise in variable costs.
It expects the fall in price to be temporary.
It has large fixed costs of production.
It has no control over the price of its product.