For a product with an external cost,the supply curve
A) represents the various quantities people can buy.
B) is the same as the marginal private cost curve.
C) is the same as the marginal social cost curve.
D) is the same as the marginal external cost curve.
E) is undefined.

Question

Quizplus · Accepted Answer

The supply curve in the context of a product with an external cost is the same as the marginal private cost curve, which reflects the costs incurred by the producer. The external costs are not included in this curve; they are part of the marginal social cost.

For a Product with an External Cost,the Supply Curve