Graph 10-1 -Refer to Graph 10-1. In the figure shown the marginal: A) benefit of the positive production externality is measured by P₃ - P₁ B) cost of the negative production externality is measured by P₃ - P₂ C) cost of the negative production externality is measured by P₃ - P₁ D) cost of the negative production externality cannot be measured

Question

Quizplus · Accepted Answer

The cost of the negative production externality is the difference between the social cost of producing Q2 (P₃) and the private cost of producing Q2 (P₁).

Graph 10-1 -Refer to Graph 10-1. in the Figure Shown the Marginal