Exhibit 30-1

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

Question

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

Quizplus · Accepted Answer

The social cost of expanding output from Q2 to Q1 in a negative externality situation is represented by the area between the social cost curve and the private cost curve over the quantity range from Q2 to Q1, which is Q2BCQ1.

Exhibit 30-1 ​

Exhibit 30-1