Refer to the above supply and demand graph. In the graph, line S is the current supply of this product, while line S₁ is the optimal supply from the society's perspective. This figure suggests that there is (are): A) External benefits from the production of this product B) External costs in the production of this product C) Currently an underallocation of resources toward producing this good D) Positive externalities from producing the good

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Quizplus · Accepted Answer

The Answer of Refer to the above supply and demand graph. In the graph, line S is the current supply of this product, while line S₁ is the optimal supply from the society's perspective. This figure suggests that there is (are): A) External benefits from the production of this product B) External costs in the production of this product C) Currently an underallocation of resources toward producing this good D) Positive externalities from producing the good

Refer to the Above Supply and Demand Graph