Suppose a firm produces pollution when it generates electricity. The cost of the pollution is called the
A) marginal cost.
B) marginal private cost.
C) marginal external cost.
D) marginal social cost.

Question

Quizplus · Accepted Answer

The cost of pollution that affects third parties not involved in the production or consumption of electricity is called the marginal external cost.

Suppose a Firm Produces Pollution When It Generates Electricity