Exhibit 30-5 ​

Multiple Choice

Exhibit 30-5
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-Refer to Exhibit 30-5. 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