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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 30-5 ​
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Exhibit 30-5 ​

Question 94

Question 94

Multiple Choice

Exhibit 30-5
​
Exhibit 30-5 ​    -Refer to Exhibit 30-5. If a positive externality exists, then the external benefits associated with the positive externality equal the distance between points __________, and the market output is __________. A) A and C; Q<sub>2</sub> B) B and D; Q<sub>1</sub> C) C and A; Q<sub>1</sub> D) B and C; Q<sub>1</sub> E) b and c
-Refer to Exhibit 30-5. If a positive externality exists, then the external benefits associated with the positive externality equal the distance between points __________, and the market output is __________.


A) A and C; Q2
B) B and D; Q1
C) C and A; Q1
D) B and C; Q1
E) b and c

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