-Refer to the Above Figure

Multiple Choice

-Refer to the above figure. S1 is the supply curve that includes only private costs. S2 is the supply curve that includes social costs. If the firm sets output by focusing on private costs, the per-unit external cost will equal

A) P2.
B) P4 - P2.
C) P4 - P1.
D) P2 - P1.