The marginal social cost of refining crude oil _____ as the quantity of crude oil refined _____.

Question

Quizplus · Accepted Answer

The marginal social cost of refining crude oil includes the cost of pollution and other negative externalities associated with the refining process. As the quantity of crude oil refined increases, the level of pollution and other negative externalities also increases, leading to an increase in the marginal social cost. Therefore, the correct answer is B - the marginal social cost of refining crude oil increases as the quantity of crude oil refined increases.

The Marginal Social Cost of Refining Crude Oil _____ as the Quantity