When the production of a good generates external costs, the producing firm's supply curve will be

A) below (to the right of) the total-cost supply curve.
B) above (to the left of) the total-cost supply curve.
C) vertical.
D) horizontal.

External Costs

Costs of an economic activity that are not borne by the parties directly involved in the transaction but by other individuals or society at large.

Supply Curve

A graph that represents the relationship between the price of a good and the quantity of the good that suppliers are willing to offer for sale.