Figure 4-9 Figure 4-9 shows a market with a negative externality. -Refer to Figure 4-9.The size of marginal external costs can be determined by A)S₂ + S₁ at each output level. B)S₂ - S₁ at each output level. C)the supply curve S₂. D)the supply curve S₁.

Question

Quizplus · Accepted Answer

The size of marginal external costs can be determined by the difference between S₂ and S₁ at each output level, as shown in the figure. Thus, the correct choice is option B.

Figure 4-9 Figure 4-9 Shows a Market with a Negative