Homework Help is Here – Start Your Trial Now!
Business
Economics
Is the external marginal cost added to the supply curve or subtracted? a) it is subtracted from the supply curve, which shifts the supply curve outwards and to the right b) it is added to the supply curve which shifts the supply curve upwards and to the left.    Note- the externaility this problem is referring to is a NEGATIVE externality

Is the external marginal cost added to the supply curve or subtracted? a) it is subtracted from the supply curve, which shifts the supply curve outwards and to the right b) it is added to the supply curve which shifts the supply curve upwards and to the left.    Note- the externaility this problem is referring to is a NEGATIVE externality

Principles of Microeconomics (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Externalities
Section: Chapter Questions
Problem 5PA: The many identical residents of Whoville love drinking Zlurp. Each resident has the following...
See similar textbooks
icon
Related questions
Question

Is the external marginal cost added to the supply curve or subtracted?

a) it is subtracted from the supply curve, which shifts the supply curve outwards and to the right

b) it is added to the supply curve which shifts the supply curve upwards and to the left. 

 

Note- the externaility this problem is referring to is a NEGATIVE externality 

Tes, i Tlave estimiateu tiiat tiie extemidl marginal cost is $20 per each thousand pounds of Booming Berries. Mega Beans Market Booming Berries Mark Booming Berries Booming Berries Wow, okay - so, if we wanted to account for this external marginal cost in the competitive Booming Berries market, would this affect the demand or supply curve? 130 S DO 120- 110 100 Clare 90 80 The supply curve 70 60 50 40 30 Mark 20 10 That is correct! D 10 20 30 40 50 60 70 80 90 100 110 120 Quantity (in thousands) Econ Mentor Is the external marginal cost added to the supply curve or subtracted? DO Clare It is subtracted from the supply curve, which shifts the supply curve outwards and to the right. It is added to the supply curve, which shifts the supply curve upwards and to the left. Price (per pound)
Transcribed Image Text:Tes, i Tlave estimiateu tiiat tiie extemidl marginal cost is $20 per each thousand pounds of Booming Berries. Mega Beans Market Booming Berries Mark Booming Berries Booming Berries Wow, okay - so, if we wanted to account for this external marginal cost in the competitive Booming Berries market, would this affect the demand or supply curve? 130 S DO 120- 110 100 Clare 90 80 The supply curve 70 60 50 40 30 Mark 20 10 That is correct! D 10 20 30 40 50 60 70 80 90 100 110 120 Quantity (in thousands) Econ Mentor Is the external marginal cost added to the supply curve or subtracted? DO Clare It is subtracted from the supply curve, which shifts the supply curve outwards and to the right. It is added to the supply curve, which shifts the supply curve upwards and to the left. Price (per pound)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Externality
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Microeconomics (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:
9781305971493
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Economics For Today
Economics For Today
Economics
ISBN:
9781337613040
Author:
Tucker
Publisher:
Cengage Learning
Micro Economics For Today
Micro Economics For Today
Economics
ISBN:
9781337613064
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Principles of Microeconomics
Principles of Microeconomics
Economics
ISBN:
9781305156050
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS