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the right. S1 represents the marginal private cost of production and D1 represents the marginal
private benefit of consumption. Suppose the production of honey generates a positive externality.
Use the line drawing tool to show the externality by drawing either a marginal social cost of
production or the marginal social benefit of consumption curve. Properly label this line.
Carefully follow the instructions above, and only draw the required object. Compared with the
socially efficient quantity for society, the private market produces honey.

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the right. S1 represents the marginal private cost of production and .pdf

  • 1. the right. S1 represents the marginal private cost of production and D1 represents the marginal private benefit of consumption. Suppose the production of honey generates a positive externality. Use the line drawing tool to show the externality by drawing either a marginal social cost of production or the marginal social benefit of consumption curve. Properly label this line. Carefully follow the instructions above, and only draw the required object. Compared with the socially efficient quantity for society, the private market produces honey.