-The figure above shows the marginal social cost of generating electricity and the marginal private cost.For 4 billion kilowatts,what is the marginal external cost?
A) $0.12
B) $0.08
C) $0.04
D) $0.00
E) $0.20

Question

-The figure above shows the marginal social cost of generating electricity and the marginal private cost.For 4 billion kilowatts,what is the marginal external cost?
A) $0.12 
B) $0.08 
C) $0.04 
D) $0.00 
E) $0.20

Quizplus · Accepted Answer

The marginal external cost is the difference between the marginal social cost and the marginal private cost. At 4 billion kilowatts, the marginal social cost is higher than the marginal private cost by $0.04, indicating the marginal external cost.

-The Figure Above Shows the Marginal Social Cost of Generating