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Exhibit 30-4 ​

Question 177

Multiple Choice

Exhibit 30-4
​
Exhibit 30-4 ​ -Refer to Exhibit 30-4. If a negative externality exists, then the external costs associated with the negative externality equal the distance between points __________, and the socially optimal output is __________. A) A and C; Q<sub>2</sub> B) D and B; Q<sub>1</sub> C) C and B; Q<sub>2</sub> D) A and B; Q<sub>2</sub> E) none of the above
-Refer to Exhibit 30-4. If a negative externality exists, then the external costs associated with the negative externality equal the distance between points __________, and the socially optimal output is __________.


A) A and C; Q2
B) D and B; Q1
C) C and B; Q2
D) A and B; Q2
E) none of the above

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