The Marginal Private Cost Curve (MC)is a Positively-Sloped Straight Line

The marginal private cost curve (MC) is a positively-sloped straight line starting at the origin. If marginal external cost increases as output increases, then the marginal social cost curve is a positively-sloped straight line

A) parallel to and above the MC curve.
B) parallel to and below the MC curve.
C) starting at the origin, above the MC curve, and with a slope greater than the MC curve.
D) starting at the origin, below the MC curve, and with a slope less than the MC curve.
E) starting above the origin, with a slope less than the MC curve.

Correct Answer:

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