-The amount of the external marginal cost per ton illustrated in the above figure is
A) $8.00 per ton.
B) $12.00 per ton.
C) $16.00 per ton.
D) zero because no external cost is illustrated.

Question

-The amount of the external marginal cost per ton illustrated in the above figure is
A) $8.00 per ton. 
B) $12.00 per ton. 
C) $16.00 per ton. 
D) zero because no external cost is illustrated.

Quizplus · Accepted Answer

The external marginal cost is the cost imposed on society by an additional unit of production. In this case, the external marginal cost is the cost of the pollution caused by the production of an additional ton of output. The figure shows that the external marginal cost is $8 per ton.

-The Amount of the External Marginal Cost Per Ton Illustrated