Use the following to answer question 117:
Figure: Marginal Social Cost and Supply
-(Figure: Marginal Social Cost and Supply)Use Figure: Marginal Social Cost and Supply.The marginal social cost curve lies above the supply curve:
A) because the marginal social benefit is greater for a common resource.
B) and the efficient quantity of this common resource is point E.
C) because the marginal social cost includes the cost to society of depleting this common resource.
D) because this is a public good.

Question

Use the following to answer question 117:
Figure: Marginal Social Cost and Supply 
-(Figure: Marginal Social Cost and Supply)Use Figure: Marginal Social Cost and Supply.The marginal social cost curve lies above the supply curve:
A) because the marginal social benefit is greater for a common resource. 
B) and the efficient quantity of this common resource is point E. 
C) because the marginal social cost includes the cost to society of depleting this common resource. 
D) because this is a public good.

Quizplus · Accepted Answer

The marginal social cost curve lies above the supply curve because the marginal social cost includes the cost to society of depleting this common resource.

Use the Following to Answer Question 117