-In the second diagram,if the distance between D₀ and D₁ represents all spillover effects in this market,excess benefit when output is at Q₀ equals the area:

Question

Quizplus · Accepted Answer

The excess benefit when output is at Q₀, considering all spillover effects, is represented by the area above the supply curve (S) and below the demand curve that accounts for these effects (D₁) between the vertical axis and the quantity Q₀. This area captures the additional welfare or consumer surplus generated due to the spillover effects up to the output level Q₀.

-In the Second Diagram,if the Distance Between D0 and D1

-In the Second Diagram,if the Distance Between D₀ and D₁