Using the above graph of a market with a positive externality, the socially optimal equilibrium price and quantity is A B с D Q1, P2. Q1, P4. Q2, P1. Q2, P3.

Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter22: Frontiers Of Microeconomics
Section: Chapter Questions
Problem 3QR
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P
P1
P2
P3
P4
E
F
G
H
Q2 Q1
MC
MBS
MBP
Q
Transcribed Image Text:P P1 P2 P3 P4 E F G H Q2 Q1 MC MBS MBP Q
Using the above graph of a market with a positive externality, the socially optimal equilibrium price and
quantity is
A
B
с
D
Q1, P2.
Q1, P4.
Q2, P1.
Q2, P3.
Transcribed Image Text:Using the above graph of a market with a positive externality, the socially optimal equilibrium price and quantity is A B с D Q1, P2. Q1, P4. Q2, P1. Q2, P3.
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