The graph is borrowed from your text. It shows two demand curves, one for "society" and one for the "Private," where here the private refers to a firm contemplating investment. Which of the following statements is true given the context of this diagram. UnderInvSpillOver.png The graph is borrowed from your text. It shows two demand curves, one for "society" and one for the "Private," where here the private refers to a firm contemplating investment. Which of the following statements is true given the context of this diagram. If left alone, the firm will invest $52m at a rate of return of 8% equaling the socially optimal investment. The demand curves are "backwards" if we are talking about a positive externality or positive spillover, since the social benefits are less than the private benefits. The graph is meaningless because it shows a horizontal supply function and no supply function is ever horizontal. None of the above