Suppose that dry cleaning 100 blouses carries a social marginal cost of $900 and an external marginal cost of $300. What is the private marginal cost of dry cleaning 100 blouses?

Question

Quizplus · Accepted Answer

The private marginal cost can be calculated by subtracting the external marginal cost from the social marginal cost. Therefore, $900 (social marginal cost) - $300 (external marginal cost) = $600 (private marginal cost).

Suppose That Dry Cleaning 100 Blouses Carries a Social Marginal