Exhibit 30-5 Refer to Exhibit 30-5. If a positive externality exists, then curve 1 represents the __________, curve 2 represents the __________, curve 3 represents the __________ and Q₁ represents the __________. A)marginal private cost curve; demand curve; marginal social benefit curve; market output B)demand curve; marginal social benefit curve; supply curve; market output C)marginal social benefit curve; demand curve; marginal private cost curve; socially optimal output D)demand curve; marginal social benefit curve; supply curve; socially optimal output E)marginal social benefit curve; supply curve; marginal private cost curve; market output

Question

Quizplus · Accepted Answer

The Answer of Exhibit 30-5 Refer to Exhibit 30-5. If a positive externality exists, then curve 1 represents the __________, curve 2 represents the __________, curve 3 represents the __________ and Q₁ represents the __________. A)marginal private cost curve; demand curve; marginal social benefit curve; market output B)demand curve; marginal social benefit curve; supply curve; market output C)marginal social benefit curve; demand curve; marginal private cost curve; socially optimal output D)demand curve; marginal social benefit curve; supply curve; socially optimal output E)marginal social benefit curve; supply curve; marginal private cost curve; market output

Exhibit 30-5 ​ Refer to Exhibit 30-5. If a Positive Externality Exists, Then

Exhibit 30-5 Refer to Exhibit 30-5. If a Positive Externality Exists, Then