The supply for products that exhibit cost externalities is generally ________ the supply for products that do not.

Question

Quizplus · Accepted Answer

Cost externalities occur when the production or consumption of a good or service imposes costs on third parties who are not directly involved in the transaction. This can lead to a market failure, as the price of the good or service does not reflect the full cost of its production or consumption. As a result, the supply of products that exhibit cost externalities is generally greater than the supply for products that do not.

The Supply for Products That Exhibit Cost Externalities Is Generally