Figure 10-12
-Refer to Figure 10-12. Which of the following is an appropriate label for Line 2?
A)social cost minus social value
B)social value minus private cost
C)demand
D)private value plus external benefit

Question

Figure 10-12 
-Refer to Figure 10-12. Which of the following is an appropriate label for Line 2?
A)social cost minus social value 
B)social value minus private cost 
C)demand 
D)private value plus external benefit

Quizplus · Accepted Answer

Line 2 represents the private value plus the external benefit, which is the total value to society, including both private and external benefits.

Figure 10-12 -Refer to Figure 10-12. Which of the Following Is an Following