Exhibit 30-1

-Refer to Exhibit 30-l. If the exhibit represents a negative externality situation, the benefit of expanding output from Q₂ to Q₁ is the area of

Question

Exhibit 30-1 -Refer to Exhibit 30-l. If the exhibit represents a negative externality situation, the benefit of expanding output from Q₂ to Q₁ is the area of

Quizplus · Accepted Answer

In a negative externality situation, the social cost is higher than the private cost. The benefit of expanding output from Q2 to Q1 is represented by the area between the demand curve and the social cost curve, which is Q2BAQ1.

Exhibit 30-1 ​

Exhibit 30-1