Use the following diagram to answer the following questions.

-Refer to Gallons. The external cost associated with the production of each gallon of output is:

Question

Use the following diagram to answer the following questions.
 
-Refer to Gallons. The external cost associated with the production of each gallon of output is:

Quizplus · Accepted Answer

The external cost is the difference between the social cost and the private cost. If the social cost per gallon is $20 and the private cost is $15, the external cost is $20 - $15 = $5.

Use the Following Diagram to Answer the Following Questions