Exhibit 30-4 ​

Exhibit 30-4
​

-Refer to Exhibit 30-4. If a negative externality exists, then curve __________ represents the marginal social cost curve and the area __________ represents the market failure.

A) 1; ACB
B) 3; BCD
C) 2; BCD
D) 3; ACB
E) 2; ACB