-In the Above Figure,market Equilibrium at Point E Yields the Quantity

question 163

Multiple Choice

-In the above figure,market equilibrium at point E yields the quantity X.The quantity is the socially optimal quantity.Point E indicates that currently there is

• A)a negative externality.
• B)a positive externality.
• C)a public good.
• D)a positive externality with subsidy.

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