Refer to the above supply and demand graph.Point A represents the current equilibrium level of output of this product and point B represents the optimal level of output from society's perspective.This supply and demand graph indicates that there is (are):
A) spillover benefits to the production of this product.
B) spillover costs to the production of this product.
C) an overallocation of resources to the production of this product.
D) a negative externality from the production of this product.

Question

Refer to the above supply and demand graph.Point A represents the current equilibrium level of output of this product and point B represents the optimal level of output from society's perspective.This supply and demand graph indicates that there is (are):
A) spillover benefits to the production of this product. 
B) spillover costs to the production of this product. 
C) an overallocation of resources to the production of this product. 
D) a negative externality from the production of this product.

Quizplus · Accepted Answer

The Answer of  Refer to the above supply and demand graph.Point A represents the current equilibrium level of output of this product and point B represents the optimal level of output from society's perspective.This supply and demand graph indicates that there is (are):
A) spillover benefits to the production of this product. 
B) spillover costs to the production of this product. 
C) an overallocation of resources to the production of this product. 
D) a negative externality from the production of this product.

Refer to the Above Supply and Demand Graph