Economics (AS & A Level) · May / June 2023 · Paper 31 · Question 10
9708Private costs and benefits, externalities and social costs and benefits
The diagram shows the demand for and supply of a good and the marginal social costs (MSC) for that good. Assuming there are no external benefits, which area measures the net social benefit at output OQ?
- Ax
- Bx – y
- Cx + y
- Dx – y – z
As printed in the paper
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Correct answer: B. x – y
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