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-In the Above Figure, S1 Represents the Supply Curve Which

Question 15

Multiple Choice

-In the above figure, S1 represents the supply curve which includes private costs, and S2 is the supply curve which includes social costs. If the firm is producing a product that has external costs that the firm does NOT have to pay, what will be the equilibrium price and quantity? A) P1, Q4 B) P2, Q3 C) P4, Q1 D) P3, Q2
-In the above figure, S1 represents the supply curve which includes private costs, and S2 is the supply curve which includes social costs. If the firm is producing a product that has external costs that the firm does NOT have to pay, what will be the equilibrium price and quantity?


A) P1, Q4
B) P2, Q3
C) P4, Q1
D) P3, Q2

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