Figure 5-3 -Refer to Figure 5-3. The size of marginal external benefits can be determined by A) the demand curve D₂. B) D₂ + D₁at each output level. C) D₂ - D₁at each output level. D) the demand curve D₁.

Question

Quizplus · Accepted Answer

The marginal external benefits are represented by the difference between the social demand curve (D2) and the private demand curve (D1) at each output level, which is D2 - D1.

Figure 5-3 -Refer to Figure 5-3. the Size of Marginal External Benefits