Question: Take a look at Figure 31-1. Why does including externalities cause the supply curve S2 to lie above the supply curve S1 that has been

Take a look at Figure 31-1. Why does "including externalities" cause the supply curve S2 to lie above the supply curve S1 that has been drawn "excluding externalities"?

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The answer hinges on the fact that supply curves reflect the marginal costs of firm... View full answer

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