-Refer to the above figure. The market equilibrium quantity is . Point represents the optimal amount of production. This indicates that there is
A) a public good which should be produced.
B) regressive taxation of the product.
C) a positive externality.
D) a negative externality.

Question

-Refer to the above figure. The market equilibrium quantity is  . Point  represents the optimal amount of production. This indicates that there is
A) a public good which should be produced. 
B) regressive taxation of the product. 
C) a positive externality. 
D) a negative externality.

Quizplus · Accepted Answer

The Answer of 
-Refer to the above figure. The market equilibrium quantity is  . Point  represents the optimal amount of production. This indicates that there is
A) a public good which should be produced. 
B) regressive taxation of the product. 
C) a positive externality. 
D) a negative externality.

-Refer to the Above Figure