-Refer to the diagram above.The distance __________ measures the __________.
A) 0P1;external cost
B) 0P2;external cost
C) P1P2;external cost
D) P1P3;external cost
E) P1P2;external benefit

Question

-Refer to the diagram above.The distance __________ measures the __________.
A) 0P1;external cost 
B) 0P2;external cost 
C) P1P2;external cost 
D) P1P3;external cost 
E) P1P2;external benefit

Quizplus · Accepted Answer

The distance P1P2 measures the external cost, as it represents the difference between the private cost and the social cost.

-Refer to the Diagram Above