The Figure Given Below Shows the Demand and Supply Curves

question 12

Multiple Choice

The figure given below shows the demand and supply curves of steel. S_p is the private supply curve, and S_s is the social supply curve that includes both private costs and external costs.Figure 13.2

-In Figure 13.2, external costs are equal to _____.

• A)P_s − P_p
• B)da
• C)Q_p − Q_s
• D)ab
• E)bc

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