In the case of a technology spillover, internalizing a positive externality will cause the supply curve of an industry to
A)shift to the right.
B)shift to the left.
C)become more elastic.
D)remain unchanged.

Question

Quizplus · Accepted Answer

When a positive externality, such as a technology spillover, is internalized, the cost of production decreases and the supply curve shifts to the right. This is because the industry can produce at a lower cost and increase output without increasing the price.

In the Case of a Technology Spillover, Internalizing a Positive