The figure below shows the marginal benefit to consumers,MB,the marginal cost to private firms,MCP,and the marginal cost to society,MCS,at each level of output of some good.
FIGURE 17-1
-Refer to Figure 17-1.What is the marginal external cost at output level Q3?

Question

The figure below shows the marginal benefit to consumers,MB,the marginal cost to private firms,MCP,and the marginal cost to society,MCS,at each level of output of some good.
  FIGURE 17-1
-Refer to Figure 17-1.What is the marginal external cost at output level Q3?

Quizplus · Accepted Answer

The marginal external cost at output level Q3 is the difference between the social cost and the private cost at that output level, which is represented by the vertical distance between the social cost curve and the private cost curve at Q3. This distance is shown as the difference between P4 and P2.

The Figure Below Shows the Marginal Benefit to Consumers,MB,the Marginal