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If the Production of a Good Creates an External Cost

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Essay

If the production of a good creates an external cost, is the supply curve the same as the marginal social cost or the same as the marginal private cost curve or both?


Definitions:

Discriminated

Treated differently or unfairly, often based on race, gender, age, or sexual orientation.

Secondary Price Discrimination

A pricing strategy where the seller charges different prices to different consumers for the same product or service, based on factors other than the cost of production.

Tertiary Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service, based on factors other than the cost of production, typically in markets that are segmented.

Robinson-Patman Act

A federal law designed to prevent anticompetitive practices by producers, specifically prohibiting price discrimination.

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