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    Economics Study Set 10
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    Exam 30: Market Failure Externalities Public Goods and Asymmetric Information
  5. Question
    Exhibit 30-1 ​
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Exhibit 30-1 ​

Question 87

Question 87

Multiple Choice

Exhibit 30-1
​
Exhibit 30-1 ​    -Refer to Exhibit 30-1. If the exhibit represents a negative externality situation, the social cost of expanding output from Q<sub>2</sub> to Q<sub>1</sub> is the area of A) ABC. B) Q<sub>2</sub>BCQ<sub>1</sub>. C) Q<sub>2</sub>BAQ<sub>1</sub>. D) Q<sub>2</sub>EAQ<sub>1</sub>.
-Refer to Exhibit 30-1. If the exhibit represents a negative externality situation, the social cost of expanding output from Q2 to Q1 is the area of


A) ABC.
B) Q2BCQ1.
C) Q2BAQ1.
D) Q2EAQ1.

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