An industry that generates detrimental externalities will have a marginal social cost higher than the marginal private cost to the industry.

Question

Quizplus · Accepted Answer

Detrimental externalities refer to the negative effects that an industry's production or activities have on society or the environment. These negative effects are not reflected in the industry's marginal private cost, but they do increase the overall cost to society, making the marginal social cost higher than the marginal private cost.

An Industry That Generates Detrimental Externalities Will Have a Marginal