watch video and answer questions
1, In the example I discuss regarding a supply shift associated with social costs, there are two supply curves: Sprivate and Spublic. Starting from Sprivate, explain exactly how we move to Spublic on the graph.
2. I discuss a graphical representation of marginal benefits (MB) and marginal cost (MC) in the market for environmental protection. In my graphical example, point QC is associated with a high level of environmental protection. That may seem like a good outcome, but our graph indicates that society would not want to increase environmental protection to that level. Why is that case?
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