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Exhibit 30-2 Refer to Exhibit 30-2. If Exhibit 30-2 Exhibits a Positive

Question 57

Multiple Choice

Exhibit 30-2

Refer to Exhibit 30-2. If Exhibit 30-2 exhibits a positive externality situation, then what is Q₂?

A) It is the quantity of output at which marginal social benefits (MSB) equal marginal private benefits (MPB) .
B) It is the quantity of output at which MPB > MSB.
C) It is the market output-the quantity of output that exists if the external benefits associated with the positive externality are not taken into account.
D) It is the socially optimal output-the quantity of output that exists if the external benefits associated with the positive externality are taken into account.

Correct Answer: