Figure 154 Suppose There Are Several Paper Mills Producing Paper

question 159

Multiple Choice

Figure 15.4 Suppose there are several paper mills producing paper for a market.These mills, located upstream from a fishing village, discharge a large amount of wastewater into the river.The waste material affects the number of fish in the river, and the use of the river for recreation and as a public water supply source.Figure 15.4 shows the paper market.Use this Figure to answer the following question(s) .
-Refer to Figure 15.4.What does S₂ represent?

• A)The market supply curve that reflects social cost
• B)The market supply curve that reflect private cost
• C)The market supply curve that reflects external cost
• D)The market supply curve that reflects social benefit

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