Refer to the graph shown. There is a $.010 per-gallon marginal cost external to the trade associated with the use of gasoline. Assuming that gasoline is sold in perfectly competitive markets, the market equilibrium price will be:
A) $0.95.
B) $1.00.
C) $1.05.
D) $1.10.

Question

Refer to the graph shown. There is a $.010 per-gallon marginal cost external to the trade associated with the use of gasoline. Assuming that gasoline is sold in perfectly competitive markets, the market equilibrium price will be: 
A) $0.95. 
B) $1.00. 
C) $1.05. 
D) $1.10.

Quizplus · Accepted Answer

The Answer of Refer to the graph shown. There is a $.010 per-gallon marginal cost external to the trade associated with the use of gasoline. Assuming that gasoline is sold in perfectly competitive markets, the market equilibrium price will be: 
A) $0.95. 
B) $1.00. 
C) $1.05. 
D) $1.10.

Refer to the Graph Shown