Exhibit 31-4 -Refer to Exhibit 31-4.If a Negative Externality Exists,then the External

Multiple Choice

Exhibit 31-4

-Refer to Exhibit 31-4.If a negative externality exists,then the external costs associated with the negative externality equal the distance between points __________,and the socially optimal output is __________.

A) A and C; Q₂
B) D and B; Q₁
C) C and B; Q₂
D) A and B; Q₂
E) none of the above