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Figure 18.1.1 -Refer to Figure 18.1.1. Which of the Following Statements Is

Question 10

Multiple Choice

Figure 18.1.1 -Refer to Figure 18.1.1. Which of the following statements is correct? A) The marginal external cost (MEC) is the sum of marginal social cost (MSC) and marginal cost (MC) . B) The marginal external cost (MEC) is the difference between marginal social cost (MSC) and marginal cost (MC) . C) When MEC is subtracted from MC, we obtain MSC. D) When adding MSC and MC, we obtain MEC. Figure 18.1.1
-Refer to Figure 18.1.1. Which of the following statements is correct?


A) The marginal external cost (MEC) is the sum of marginal social cost (MSC) and marginal cost (MC) .
B) The marginal external cost (MEC) is the difference between marginal social cost (MSC) and marginal cost (MC) .
C) When MEC is subtracted from MC, we obtain MSC.
D) When adding MSC and MC, we obtain MEC.

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