Demand BA Quantity Refer to Externality graph above. Point A is the current equilibrium level of output of t product and point B is the socially optimal level of output for the society.S is the supply curve that includes private costs. St is the supply curve that includes public costs. The gra indicates that there is (are): O a. positive extermalities from product production. O b. spillover costs from the production of this product. Oc spillover benefits to the production of this product. O d. an underallocation of resources to product production.
Demand BA Quantity Refer to Externality graph above. Point A is the current equilibrium level of output of t product and point B is the socially optimal level of output for the society.S is the supply curve that includes private costs. St is the supply curve that includes public costs. The gra indicates that there is (are): O a. positive extermalities from product production. O b. spillover costs from the production of this product. Oc spillover benefits to the production of this product. O d. an underallocation of resources to product production.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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