Exhibit 31-5 -Refer to Exhibit 31-5.If a Positive Externality Exists,then Curve 1

Multiple Choice

Exhibit 31-5

-Refer to Exhibit 31-5.If a positive externality exists,then curve 1 represents the __________,curve 2 represents the __________,curve 3 represents the __________ and Q₁ represents the __________.

A) marginal private cost curve; demand curve; marginal social benefit curve; market output
B) demand curve; marginal social benefit curve; supply curve; market output
C) marginal social benefit curve; demand curve; marginal private cost curve; socially optimal output
D) demand curve; marginal social benefit curve; supply curve; socially optimal output
E) marginal social benefit curve; supply curve; marginal private cost curve; market output