A market supply curve reflects the
A)external costs of producing a good or service.
B)external benefits of producing a good or service.
C)marginal social costs of producing a good or service.
D)marginal private costs of producing a good or service.

Question

Quizplus · Accepted Answer

A market supply curve reflects the marginal private costs of producing a good or service, which includes the direct costs incurred by firms in producing the good, such as labor and materials. It does not account for external costs or benefits, which are costs or benefits that are borne by or accrue to others outside of the transaction. The marginal social costs, on the other hand, takes into account both the private costs and external costs of production.

A Market Supply Curve Reflects the