Exhibit 30-2

-Refer to Exhibit 30-2. If the exhibit represents a positive externality situation, the private benefit of expanding output from Q₁ to Q₂ is the area of

Question

Exhibit 30-2 -Refer to Exhibit 30-2. If the exhibit represents a positive externality situation, the private benefit of expanding output from Q₁ to Q₂ is the area of

Quizplus · Accepted Answer

The private benefit of expanding output in a positive externality situation is represented by the increase in consumer and producer surplus, which is the area under the private demand curve (or marginal private benefit curve) between the two quantities. This area is described by the rectangle Q₁AEQ₂.

Exhibit 30-2 ​

Exhibit 30-2