alleryStart learning →The supply curve that accounts for the additional external costs is labelled:
AS private
BS nominal
CS marginal
DS social
Answer & Solution
Correct answer: D. S social
1. Two supply curves are compared, one wider in scope than the other.
2. The firm's own costs give one supply curve.
3. Accounting for additional external costs of 100 dollars for every unit produced gives another.
4. That second curve is the firm's supply curve labelled S social.
_Source: OpenStax Principles of Microeconomics for AP Courses 2e (CC BY 4.0), Ch 12 'Environmental Protection and Negative Externalities'_
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