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Fall 2022 Suppose the following equations describe a scenario involving an externality: MSB=MPB=12-0.50 MSC=2+1.50 MPC=2+0.50 1. What kind of externality (positive or negative) is this?

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Fall 2022 Suppose the following equations describe a scenario involving an externality: MSB=MPB=12-0.50 MSC=2+1.50 MPC=2+0.50 1. What kind of externality (positive or negative) is this? How do you know? 2. Sketch a graph of the marginal cost and benefit curves for this scenario

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