C the supply curve S. This measures the size of the external benefit that will be realised from third-parties if the amount of goods consumed rises to the socially optimal amount ie. Solved The Private Profit Maximizing Quantity For The Firm Chegg Com Variable Costs Variable costs are expenses that vary in proportion to the volume of goods. . C the supply curve S2. It is calculated by taking the total change in the cost of producing more goods and dividing that by the change in the number of goods produced. D the demand curve D1. The size of marginal external costs can be determined by A the supply curve S 2. The size of marginal external costs can be determined by S2 - S1 at each output level. MEC MSC - MPC This is the margianl external cost formula. Thus MSC MPC MEC. The size of marginal external costs can be determined by A S2 S1 at each output level. Visually the MSC curve is raised higher than the MC ...
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