An external cost on supply can be measured graphically as the

Name: An external cost on supply can be measured graphically as the
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An external cost on supply creates a divergence between the social cost and private cost of production. This means that the market supply curve (which is based on private cost) is lower than the social supply curve (which includes the external cost). Therefore, the external cost can be measured graphically as the vertical distance between these two curves.

An External Cost on Supply Can Be Measured Graphically as the