Exhibit 30-2 ​

Multiple Choice

Exhibit 30-2
​

-Refer to Exhibit 30-2. If Exhibit 30-2 exhibits a positive externality situation, then what is Q₂?

A) It is the quantity of output at which marginal social benefits (MSB) equal marginal private benefits (MPB) .
B) It is the quantity of output at which MPB > MSB.
C) It is the market output-the quantity of output that exists if the external benefits associated with the positive externality are not taken into account.
D) It is the socially optimal output-the quantity of output that exists if the external benefits associated with the positive externality are taken into account.
E) none of the above