Use the table below to answer the following questions.
Table 15.2.2
Chemical Fertilizer Market
-Refer to Table 15.2.2.Production of fertilizer has a marginal
A)external cost of $100 a tonne.
B)social cost of $100 a tonne.
C)external cost of $30 a tonne.
D)private cost of $30 a tonne.
E)external cost of $0.

Question

Use the table below to answer the following questions.
Table 15.2.2
Chemical Fertilizer Market 
-Refer to Table 15.2.2.Production of fertilizer has a marginal
A)external cost of $100 a tonne. 
B)social cost of $100 a tonne. 
C)external cost of $30 a tonne. 
D)private cost of $30 a tonne. 
E)external cost of $0.

Quizplus · Accepted Answer

The correct answer is that the production of fertilizer has a marginal external cost of $30 a tonne. This is determined by understanding that external costs are those costs not borne by the producer or consumer but by third parties or society at large.

Use the Table Below to Answer the Following Questions