MCQ Revision Question - Externalities and Welfare Losses

​This is a tricky analysis MC question asking students to calculate the area of net social benefit at the private optimum level of output in a situation where there are negative externalities in production. We take students through the correct reasoning behind the answer.

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• #education
• #externalities
• #market_failure
• #social_welfare
• #social_benefit
• #net_social_benefit