Compared to private marginal cost, a firm's marginal cost curve after the imposition of an environmental charge is

Question

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The imposition of an environmental charge increases the cost for the firm in terms of environmental damages. Therefore, the firm's marginal cost curve after the imposition of an environmental charge is higher than its private marginal cost curve. This is because the firm is now internalizing the externality cost of their actions on the environment, resulting in a higher cost of production.

Compared to Private Marginal Cost, a Firm's Marginal Cost Curve