Refer to the information provided in Figure 16.2 below to answer the question(s) that follow. Figure 16.2
-Refer to Figure 16.2. The ________ imposed as a result of producing cars is $10.00 per car.
A) marginal social cost
B) marginal damage cost
C) total cost
D) marginal private cost

Question

Refer to the information provided in Figure 16.2 below to answer the question(s) that follow.  Figure 16.2
-Refer to Figure 16.2. The ________ imposed as a result of producing cars is $10.00 per car.
A) marginal social cost 
B) marginal damage cost 
C) total cost 
D) marginal private cost

Quizplus · Accepted Answer

The correct term for the cost imposed as a result of producing cars, which is not accounted for by the private market, is the marginal damage cost. This cost represents the external costs or negative externalities, such as pollution, that affect third parties.

Refer to the Information Provided in Figure 16