=+d. Now suppose that for every unit of x that is produced, an amount of pollution that

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=+d. Now suppose that for every unit of x that is produced, an amount of pollution that causes social damage of d is emitted. If you wanted to illustrate not just the marginal cost of production (as captured in supply curves) but also the additional marginal cost of pollution

(that is not felt by producers), where would that “social marginal cost” curve lie in your graph?

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