Exhibit 30-4 ​ Refer to Exhibit 30-4. If a Negative Externality Exists, Then

Multiple Choice

Exhibit 30-4 ​

Refer to Exhibit 30-4. If a negative externality exists, then the external costs associated with the negative externality equal the distance between points __________, and the socially optimal output is __________.

A) A and C; Q₂
B) D and B; Q₁
C) C and B; Q₂
D) A and B; Q₂