Which type of curve diverges when an externality arises from production rather than consumption?
A
Both externalities shift benefit curves, whereas cost curves remain unchanged.
B
Consumption externalities shift cost curves, whereas production externalities shift benefit curves.
C
Production externalities shift cost curves, whereas consumption externalities shift benefit curves.
D
Production externalities shift benefit curves, whereas consumption externalities shift cost curves.
7.4.4 positive and negative externalities of both consumption and production Flashcards
26 flashcards on CIE Intl A Level Economics 7.4.4 positive and negative externalities of both consumption and production: the key terms and definitions you need to recall.