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The Consumption of a Good Entails a $2 Positive External

Question 56

Multiple Choice

The consumption of a good entails a $2 positive external benefit per unit.The following graph shows the market supply and demand of this good.Which of the dashed lines represents the marginal social benefit curve?
The consumption of a good entails a $2 positive external benefit per unit.The following graph shows the market supply and demand of this good.Which of the dashed lines represents the marginal social benefit curve?   A)  Line 1 B)  Line 2 C)  Line 3 D)  Line 4


A) Line 1
B) Line 2
C) Line 3
D) Line 4

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