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 from QS1U1B11S1U1B0 to QS1U1B12S1U1B0 is the difference between the marginal private benefit (MPB) and the marginal private cost (MPC). In this case, the MPB is P1 and the MPC is S1U1B12. The private benefit is therefore the area of QS1U1B11S1U1B0AEQS1U1B12S1U1B0.

Exhibit 30-2 ​ Refer to Exhibit 30-2. If the Exhibit Represents a Positive

Exhibit 30-2 Refer to Exhibit 30-2. If the Exhibit Represents a Positive