-Graphically, the Presence of an External Cost That Is Ignored

question 109

Multiple Choice

-Graphically, the presence of an external cost that is ignored by producers can be shown as

• A) a market supply curve to the left of the market supply curve for where the producers have to pay for the external cost.
• B) a market supply curve to the right of the market supply curve for which the producers have to pay for the external cost.
• C) a market supply curve the same as the market supply curve for which the producers have to pay for the external cost.
• D) the absence of a market supply curve.