-In the above figure, market equilibrium at point E yields the quantity X. The quantity is the socially optimal quantity. Point E indicates that currently there is
A) a negative externality.
B) a positive externality.
C) a public good.
D) a positive externality with subsidy.

Question

-In the above figure, market equilibrium at point E yields the quantity X. The quantity  is the socially optimal quantity. Point E indicates that currently there is
A) a negative externality. 
B) a positive externality. 
C) a public good. 
D) a positive externality with subsidy.

Quizplus · Accepted Answer

The Answer of 
-In the above figure, market equilibrium at point E yields the quantity X. The quantity  is the socially optimal quantity. Point E indicates that currently there is
A) a negative externality. 
B) a positive externality. 
C) a public good. 
D) a positive externality with subsidy.

-In the Above Figure, Market Equilibrium at Point E Yields