Economics A Level (DONEEEEEEE): Describe, using Pollution as an Example, why, in a Negative [Or Positive] Production Externality Graph, may the Lines Diverge?

Question

Describe, using Pollution as an Example, why,  in a Negative [Or Positive] Production Externality Graph, may the Lines Diverge?

eric_galvao · Accepted Answer

-If the Lines Diverge then the External Costs per Unit gets Larger and Larger as Output Increases
-Pollution may explain 1 Reason why - External Costs per Units created via Pollution may Increase as Output [More Pollution] Increases

Economics A Level (DONEEEEEEE)

Describe, using Pollution as an Example, why, in a Negative [Or Positive] Production Externality Graph, may the Lines Diverge?

-If the Lines Diverge then the External Costs per Unit gets Larger and Larger as Output Increases -Pollution may explain 1 Reason why - External Costs per Units created via Pollution may Increase as Output [More Pollution] Increases

Author