-Refer to the above figure.An external benefit exists.The amount of that benefit is represented by A) $\mathrm { P } _ { 4 }$ . B)the vertical distance between D₁ and D₂. C)the distance between G and F. D)P₃.

Question

Quizplus · Accepted Answer

The vertical distance between D₁ and D₂ represents the external benefit, as it shows the difference in consumer surplus between the socially optimal quantity (Q₂) and the market quantity (Q₁).

-Refer to the Above Figure P4\mathrm { P } _ { 4 }P4​

-Refer to the Above Figure $\mathrm { P } _ { 4 }$