Figure 10-5
-Refer to Figure 10-5. The graph represents a market in which
A)there is no externality.
B)there is a positive externality.
C)there is a negative externality.
D)The answer cannot be determined from inspection of the graph.

Question

Figure 10-5 
-Refer to Figure 10-5. The graph represents a market in which
A)there is no externality. 
B)there is a positive externality. 
C)there is a negative externality. 
D)The answer cannot be determined from inspection of the graph.

Quizplus · Accepted Answer

The graph shows that the social value of the good is greater than the private value, indicating a positive externality.

Figure 10-5 -Refer to Figure 10-5. the Graph Represents a Market in a Market