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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:

Hypotheses

Proposed explanations for a phenomenon, made as a starting point for further investigation.

Observations

The act of noting and recording something with instruments or the senses as a part of scientific research or empirical study.

Paradigm Shift

A fundamental change in the basic concepts and experimental practices of a scientific discipline.

Falsifiable Hypothesis

A hypothesis that can be demonstrated to be false by an experiment or observation, a critical aspect of the scientific method.

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