The market demand curve is a reflection of society's marginal benefit schedule including the social costs of any production externalities.

Question

Quizplus · Accepted Answer

The market demand curve reflects the willingness to pay of consumers for different quantities of a good, but it does not include the social costs of any production externalities; those are considered separately in economic analysis of social or true cost.

The Market Demand Curve Is a Reflection of Society's Marginal