-The above figure shows the marginal social benefit, marginal private cost and marginal social cost of producing steel. There is a marginal external ________ of ________ per ton.
A) benefit; $200
B) benefit; $100
C) cost; $200
D) cost; $100

Question

-The above figure shows the marginal social benefit, marginal private cost and marginal social cost of producing steel. There is a marginal external ________ of ________ per ton.
A) benefit; $200 
B) benefit; $100 
C) cost; $200 
D) cost; $100

Quizplus · Accepted Answer

The marginal external cost is the difference between the marginal social cost and the marginal private cost, which is $100 per ton.

-The Above Figure Shows the Marginal Social Benefit, Marginal Private