Multiple Choice
Figure 10-5
-Refer to Figure 10-5. Which of the following statements is correct?
A) The marginal benefit of the positive externality is measured by P3 - P1.
B) The marginal cost of the negative externality is measured by P3 - P2.
C) The marginal cost of the negative externality is measured by P3 - P1.
D) The marginal cost of the negative externality is measured by P3 - P0.
Correct Answer:

Verified
Correct Answer:
Verified
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