Exhibit 31-2

-Refer to Exhibit 31-2.If the exhibit represents a positive externality situation,the private cost of expanding output from Q₁ to Q₂ is the area of

Question

Exhibit 31-2 -Refer to Exhibit 31-2.If the exhibit represents a positive externality situation,the private cost of expanding output from Q₁ to Q₂ is the area of

Quizplus · Accepted Answer

The private cost of expanding output from Q1 to Q2 is the area of Q1ABQ2. This is because the private cost is the cost to the producer, and the producer only incurs the cost of producing the additional output, which is the area of Q1ABQ2.

Exhibit 31-2 -Refer to Exhibit 31-2.If the Exhibit Represents a Positive Externality