Since MPC and MSC refers to the costs and MPB and MSB refers to the benefit, shouldn't the diagram show divergence of MPC and MSC instead of negative divergence between MPB and MSB since negative externalities refers to the extra costs that third parties would receive?
Since MPC and MSC refers to the costs and MPB and MSB refers to the benefit, shouldn't the diagram show divergence of MPC and MSC instead of negative divergence between MPB and MSB since negative externalities refers to the extra costs that third parties would receive?
yeah^ i think the diagram is wrong T^T