FIGURE 16-1 -Refer to Figure 16-1.Suppose the perfectly competitive market with no government intervention achieves equilibrium at point A.If the social marginal costs and social marginal benefits are represented by MC₀ and MB₀,respectively,then there exists A)a negative external benefit. B)a negative external cost. C)a positive external benefit. D)a positive external cost. E)no externality whatsoever.

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The Answer of FIGURE 16-1 -Refer to Figure 16-1.Suppose the perfectly competitive market with no government intervention achieves equilibrium at point A.If the social marginal costs and social marginal benefits are represented by MC₀ and MB₀,respectively,then there exists A)a negative external benefit. B)a negative external cost. C)a positive external benefit. D)a positive external cost. E)no externality whatsoever.

FIGURE 16-1 -Refer to Figure 16-1.Suppose the Perfectly Competitive Market with No