Homework answers / question archive / In the figure to the right, why does "including externalities" cause the supply curve Sy to lie above the supply curve S, that has been drawn "excluding externalities"? "Including externalities" causes the supply curve Sy to lie above the supply curve S, that has been drawn "excluding externalities" because S2 Price of Good X per unit S EN O A

In the figure to the right, why does "including externalities" cause the supply curve Sy to lie above the supply curve S, that has been drawn "excluding externalities"? "Including externalities" causes the supply curve Sy to lie above the supply curve S, that has been drawn "excluding externalities" because S2 Price of Good X per unit S EN O A

Economics

Share With

In the figure to the right, why does "including externalities" cause the supply curve Sy to lie above the supply curve S, that has been drawn "excluding externalities"? "Including externalities" causes the supply curve Sy to lie above the supply curve S, that has been drawn "excluding externalities" because S2 Price of Good X per unit S EN O A. S, reflects both marginal private and external costs of production, while Sy reflects only marginal private costs of production. O B. Sy reflects marginal social costs of production, while Sy reflects only marginal private costs of production OC. Sy reflects both marginal private and external costs of production, while S, reflects only marginal private costs of production. OD. Sy reflects both average private and external costs of production, while S, reflects only average private costs of production. P D Q2 Q, Quantity of Good X per time period