Problem
Explain how the accounting profits (or losses) of an unsubsidized public enterprise, the output of which creates positive externalities for other firms, are likely to overstate (understate) the true level of profits (losses) of that firm. Is it possible for a para-state firm which creates positive externalities to private sector enterprises to have an accounting loss but still be "socially profitable"? Explain.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.