-The figure above shows the marginal social cost curve of generating electricity,the marginal private cost curve,and the demand curve.The marginal external cost of producing 200 billion kilowatt hours per day is ________ per kilowatt.
A) 0¢
B) 10¢
C) 20¢
D) 15¢
E) 5¢

Question

-The figure above shows the marginal social cost curve of generating electricity,the marginal private cost curve,and the demand curve.The marginal external cost of producing 200 billion kilowatt hours per day is ________ per kilowatt.
A) 0¢ 
B) 10¢ 
C) 20¢ 
D) 15¢ 
E) 5¢

Quizplus · Accepted Answer

The marginal external cost is the difference between the marginal social cost and the marginal private cost. At 200 billion kilowatt hours per day, the marginal social cost is 20¢ and the marginal private cost is 10¢, so the marginal external cost is 20¢ - 10¢ = 10¢.

-The Figure Above Shows the Marginal Social Cost Curve of Generating