For a common resource,the marginal private cost curve slopes ________ and the marginal social cost curve slopes ________.
A)upward;upward
B)upward;downward
C)downward;upward
D)downward;downward
E)upward or downward;in the same direction as the marginal private cost curve

Question

Quizplus · Accepted Answer

The marginal private cost curve typically slopes upward because as production increases, the cost of producing each additional unit also increases due to factors like diminishing returns. The marginal social cost curve also slopes upward for the same reason, but it includes the external costs borne by society, not just the private costs incurred by the producer.

For a Common Resource,the Marginal Private Cost Curve Slopes ________