-Refer to the above figure. S1 is the supply curve that includes only private costs. S2 is the supply curve that includes social costs. From this figure we know that

Question

Quizplus · Accepted Answer

The supply curve S2, which includes social costs, lies above S1, the supply curve that includes only private costs. This indicates that when social costs are considered, the total cost of producing the good is higher than when considering only private costs. Therefore, private costs are less than social costs.

-Refer to the Above Figure