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

Question

Quizplus · Accepted Answer

The supply curve for a product with an external cost represents the marginal private cost, which does not include external costs.

For a Product with an External Cost, the Supply Curve