The document discusses marginal private cost and benefit curves for honey production and consumption. It states that honey production generates a positive externality. The externality should be shown through either a marginal social cost of production or marginal social benefit of consumption curve. The private market produces less honey than would be socially efficient due to the positive externality.

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.