Exhibit 30-2 ​ Refer to Exhibit 30-2. If the Exhibit Represents a Positive

question 123

Multiple Choice

Exhibit 30-2 ​

Refer to Exhibit 30-2. If the exhibit represents a positive externality situation, the private cost of expanding output from Q₁ to Q₂ is the area of

• A)Q₁ABQ₂.
• B)Q₁AEQ₂.
• C)Q₁CBQ₂.
• D)ABE.

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Definitions:

Model

In science and engineering, a model is a simplified representation of a system or phenomenon, used to simulate and analyze its behavior.

Applicable

Capable of or suitable for being applied; relevant or appropriate in a given situation.

Leverage

The use of various financial instruments or borrowed money to increase the potential return of an investment.

Linear Model

A mathematical representation of a relationship between two or more variables where the effect is proportional to the cause.