True or False: Positive externalities always lead to market inefficiencies because the benefits they create are not reflected in the market price of goods or services.

The statement is true. Positive externalities occur when a good or service creates benefits for others who did not pay for it, which means the full value of these benefits is not included in the market price. This can lead to market inefficiencies because the producers might not supply enough of the good or service since they cannot capture all the benefits. For example, if a company invests in a park that improves the neighborhood, the increased property values benefit everyone, but the company does not receive payment for those benefits. As a result, fewer parks may be built than what is socially optimal, leading to a missed opportunity for greater overall happiness and utility in the community.