If the Production of a Good Creates an External Cost

question 132

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?

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Definitions:

Somatic Motor Neuron

A type of neuron that sends impulses from the central nervous system to skeletal muscle cells, causing them to contract.

Autonomic Ganglion

A cluster of nerve cells that are part of the autonomic nervous system, which controls involuntary bodily functions.

Effector Organ

Any organ or tissue that responds to nerve impulses by performing a specific function, such as a muscle contracting or a gland secreting hormones.

Sympathetic Effect

The body's response to stress, often described as the "fight or flight" reaction, mediated by the sympathetic nervous system.