Considering the graph below, which of the following statements is correct? a. Th

Question

Considering the graph below, 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. Considering the graph below, which of the following statements is correct? The marginal benefit of the positive externality is measured by P3 - P1. The marginal cost of the negative externality is measured by P3 - P2. The marginal cost of the negative externality is measured by P3 - P1. The marginal cost of the negative externality is measured by P3 - P0.

Explanation / Answer

b. The marginal cost of the negative externality is measured by P3 - P2.

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