For a good with an external cost, the supply curve
A) represents the various quantities people can buy.
B) is the same as the marginal private cost curve.
C) is the same as the marginal social cost curve.
D) is the same as the marginal external cost curve.

Question

Quizplus · Accepted Answer

The supply curve for a good with an external cost represents the marginal private cost, which is the cost borne by the producer, not accounting for external costs.

For a Good with an External Cost, the Supply Curve