If the magnitude of the external costs in an industry increased
A)The supply curve including external costs would increase
B)The efficient price would increase
C)The market price would increase
D)Both a and b are true

Question

If the magnitude of the external costs in an industry increased
A)​The supply curve including external costs would increase
B)​The efficient price would increase
C)​The market price would increase
D)​Both a and b are true

Quizplus · Accepted Answer

The efficient price would increase because external costs are considered in the efficient price, leading to a higher price to account for these costs.

If the Magnitude of the External Costs in an Industry