Optimal Equilibrium With Positive Externalities
In the image below, where D-1 is the buyers quantity demanded and D-T is the quantity demanded that includes positive externality, at what point will you find the optimal equilibrium?
A
Optimal equilibrium is found on the supply curve at A and B.
B
Optimal equilibrium is found on the supply curve at B and C.
C
Optimal equilibrium is found at price point B.
D
Optimal equilibrium is found on the supply curve at A and D.