With the help of the graph, it is observed that the marginal private benefit of the...

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With the help of the graph, it is observed that the marginal private benefit of the good is $95 and, due to a positive externality, the marginal benefit to society is $125. In this case, the marginal external benefit created by the positive externality is $. In the graph, The deadweight loss represents a deadweight loss. the foregone benefit to society of the externality. Positive externality will occur when O A. the marginal social benefit O B. the marginal social benefit is equal to deadweight loss OC. the marginal social benefit is greater than the marginal cost to produce at the market equilibrium O D. the marginal social benefit is equal to marginal social cost to produce at the market equilibrium Which of the following statements is true regarding pecuniary externalities? equal to marginal private benefit OA. It is a branch of the negative externality. OB. It causes market inefficiencies. OC. It leads to wrong equilibrium quantities. OD. It affects other people only through market price. Prices (in dollars) 150- 140- 130- 125 120- 110- 100- 35 80- 70- 60- 50 Graph B. D Qmarket Qoptimal Quantity S MSB With the help of the graph, it is observed that the marginal private benefit of the good is $95 and, due to a positive externality, the marginal benefit to society is $125. In this case, the marginal external benefit created by the positive externality is $. In the graph, The deadweight loss represents a deadweight loss. the foregone benefit to society of the externality. Positive externality will occur when O A. the marginal social benefit O B. the marginal social benefit is equal to deadweight loss OC. the marginal social benefit is greater than the marginal cost to produce at the market equilibrium O D. the marginal social benefit is equal to marginal social cost to produce at the market equilibrium Which of the following statements is true regarding pecuniary externalities? equal to marginal private benefit OA. It is a branch of the negative externality. OB. It causes market inefficiencies. OC. It leads to wrong equilibrium quantities. OD. It affects other people only through market price. Prices (in dollars) 150- 140- 130- 125 120- 110- 100- 35 80- 70- 60- 50 Graph B. D Qmarket Qoptimal Quantity S MSB

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Marginal external benefit created by positive externalityMB to society MPB Mar... View the full answer